Bitcoin

<a href="https://blockchainreporter.net/bitcoin-price/" rel="noopener noreferrer nofollow">Bitcoin’s price</a> is once again radiating a robust buying confidence, rebounding quickly from a dip to $27K and maintaining a sturdy position above the pivotal $27,500 mark. The surging force behind this recovery is linked to a crucial metric that is boosting confidence among long-term holders. Furthermore, with buyers continuously seizing the dips in anticipation of reviving the ‘Uptober’ trend, BTC’s price may imminently breach its immediate resistance levels, potentially igniting a soaring trend.<h2 id="header-0">BTC’s Open Interest Rises By $600 Million</h2>Over the last 24 hours, BTC price witnessed a renewed buying interest among traders as the BTC price successfully tested the support near $27K. As a result, Bitcoin is now on a buying demand and is aiming to break above the $28K mark in the coming hours. Interestingly, traders are now opening futures contracts as seen in the Open Interest chart.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/c300c292edc9475396caeb401c9d7240.png" />Data from Coinglass reveals that the Open Interest (OI) metric witnessed a notable increase over the last 24 hours. The OI metric has jumped from $11.1 billion to $11.7 billion, marking a $600 million increase.An uptick in open interest might indicate strong bullish or bearish sentiment among traders, depending on the direction of the price movement. If prices and open interest are rising simultaneously, it often signals bullish sentiment. Additionally, a surge in open interest, especially when aligned with high trading volumes, can lead to enhanced volatility, as it suggests that new money is flowing into the market, potentially boosting price swings in upward direction.Long-term holders are also increasingly becoming bullish on Bitcoin’s current price movement. <a href="https://x.com/glassnodealerts/status/1709874924846825493?s&#61;20" rel="noopener noreferrer nofollow">Glassnode’s data</a> reveals that the total number of HODLed coins reached a 5-year high recently, touching 7905007 BTC.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/9ae62c36af7a4d3a878db6c60ff1ccab.png" />HODL or hold on for dear life means that investors are holding Bitcoin without succumbing to the impulse of selling during short-term price drops. As more investors HODL Bitcoin, the available supply in the market declines, which, according to basic economic principles of supply and demand, can exert upward pressure on the price.A rise in HODLed coins often signals strong investor confidence in the asset’s long-term potential, which can attract further investment and potentially stabilize Bitcoin during volatile periods.<h2 id="header-1">Bitcoin May Stop Supporting $27K Soon</h2>While investors might find peace in Bitcoin’s seemingly stable price, hovering around the $27,000 mark, a potentially turbulent undercurrent, suggested by a particular metric, could disrupt their bullish aspirations. Data from Glassnode unveils a surge in Bitcoin’s NVT signal (network value to transaction ratio) to a staggering 1,737.098, a level not witnessed in the preceding five years.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/36897326dd20407ca725f29f8ba90c3c.png" />NVT, conceived by statistician Willy Woo, serves as a metric that scrutinizes the correlation between Bitcoin’s on-chain activity and its price. The NVT signal refines its analytical approach by incorporating a 90-day moving average of daily transaction volume, eschewing the utilization of raw data. This adaptation, as advocated by Glassnode, amplifies the NVT’s efficacy, positioning it as a more dependable precursor indicator.In a departure from its historically volatile nature, Bitcoin has managed to maintain a semblance of price stability throughout the current year. However, since the onset of 2023, Bitcoin’s NVT ratio has witnessed a sharp surge. The momentum was notably catalyzed as the BTC price surged past the $20K threshold, subsequently solidifying its position above $30K recently.Even though Bitcoin’s current value hovers at less than half of its 2022 peak, the network volume has plummeted to such an extent that even a valuation of $27,000 might be teetering on the brink of sustainability. A heightened Bitcoin NVT suggests that its network valuation is outpacing its transaction value, which could be indicative of either vigorous growth and investor enthusiasm or a precarious price bubble on the verge of bursting.

Bitcoin Holds Above $27,500 as HODLed Coin Hits 5-Year High, Signaling Confidence Among Long-Term Investors

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