- BTC rose to $70,000 with network fundamentals positive.
- Is this a bullish signal despite the short-term correction and likely consolidation?
Bitcoin [BTC] network foundations changed positive for the first time in October, on what one analyst considered a positive signal for the assets in the medium term.
According to CryptoQuant, the positive network metrics were a known trend during bullish periods and suggested a likely positive outcome for the asset despite a likely correction or consolidation.
After a recent run towards $70,000, the 30-day average number of active BTC addresses rose towards the 1 million mark. It reached levels last seen in June, indicating a surge of interest in this asset during last week’s pump.
Source: CryptoQuant
Next step a BTC increase?
A similar positive trend was recorded in the mining segment and network costs. In particular the mining problems reached an all-time high, indicating intense competition for rewards among BTC miners, a positive catalyst for BTC’s intrinsic value.
Additionally, BTC apparent demand, or the difference between production and inventory schedule, rose to a six-month high of 256,000 BTC at the time of writing. In most cases, the peak in demand is always preceded by a BTC price increase.
Source: CryptoQuant
Despite the positive catalysts mentioned above, analysts had mixed BTC price projections as the US elections approached.
Blockworks analyst Felix Jauvin warned that BTC could be range-bound until the election was over.
“Nobody wants to be a marginal risk buyer here so close to the elections. Probably just a lot of chopping until it’s over…:
Another expert, Justin Bennettreiterated its cautious sentiment, citing whales’ lack of interest in taking advantage of the recent midweek dip.
Since October 17, Whale vs. Retail Delta, which tracks Whales’ positioning against retailers, fell, indicating Whales have trimmed their exposure to BTC.
Source: Hyblock
Interestingly, options traders remained bullish, as evidenced by their increased purchase of call options (bets that the BTC price will rise) on Election Day.
In the daily update of October 22, trading firm QCP Capital reports noted,
“Short-term implied volatility peaks at the close of Election Day, with a spread of 10 vol over the previous expiration and skews favoring calls over puts, despite BTC trading around 8% below its high level ever is”
