- Bitcoin surged past $27,000, sparking optimism in the crypto market.
- A significant outflow of Bitcoin from the exchanges coincided with the bullish run.
Lately Bitcoin [BTC] is in a bullish run, approaching the $28,000 mark and providing renewed optimism among investors.
Read Bitcoin’s [BTC] Price forecast 2023-2024
Withdraw from exchanges
According to Santiment data, there was a substantial movement of Bitcoin out of exchanges, with the largest number of coins (over 10,000 BTC) leaving exchanges since September 7.
This trend coincided with Bitcoin’s second attempt to break the $28,000 market cap threshold.
However, it is worth noting that unique Bitcoin addresses have hit their lowest point in six weeks. This decrease in the number of unique addresses can be interpreted both positively and negatively.
On the one hand, this could indicate a consolidation of the interests of long-term investors. On the other hand, it could indicate a slowdown in the acquisition of new Bitcoin users or addresses.
Source: Santiment
Another important factor was the growing percentage of addresses with profits. The Percent Addresses in Profit (7d MA) metric recently reached a one-month high of 68.266%.
While this is a sign of profitability for Bitcoin holders, it could also attract higher sell-offs as some investors may seize the opportunity to book profits during this bullish phase.
📈 #Bitcoin $BTC Percentage of Addresses in Profit (7d MA) Just Hit a One-Month High of 68.266%
View statistics:https://t.co/ik5IkrcQZM pic.twitter.com/HDRU04cPBk
— Glassnode Alerts (@glassnodealerts) October 5, 2023
Traders are becoming optimistic
Traders showed their optimism during this period. The put-to-call ratio for Bitcoin fell from 0.49 to 0.46, implying a shift in sentiment towards more bullishness among traders. A lower put-to-call ratio indicated that a greater share of traders expected price increases.
When observing the Open Interest (OI) normalized Cumulative Volume Delta (CVD) for Bitcoin, a decline was noticed. OI-normalized CVD provides insight into the buying and selling pressure within the market. The decline suggested that buying pressure was easing.
Source: Velo
Additionally, the implied volatility (IV) of Bitcoin’s ATM options increased, reflecting market expectations of future volatility. Increasing the IV could indicate uncertainty or expectations of greater price swings in Bitcoin’s future.
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Traders often keep a close eye on IV to make informed decisions.
Source: Velo
Finally, mining revenue for Bitcoin fell. This could lead to increased selling pressure among miners as they sought to maintain profitability. If miners start selling their holdings, other addresses may soon be tempted to sell their BTC as well.
Source: Blockchain