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Bitcoin Price Insights, October 20, 2023
- Bitcoin (BTC) price broke above $30,000 on Friday, October 20, 2023, erasing the losses that resulted from Cointelegraph’s false ETF approval news on Monday.
- The entry price charts of current Bitcoin holders show that 70% of investors are now in profitable positions, the highest since August
- The daily technical analysis charts highlight key resistance and support levels ranging from $26,750 to $40,000, which could impact BTC price action in the days ahead.
Bitcoin’s (BTC) price rally broke above $30,000 on Friday, October 20, 2023, erasing the losses that resulted from Cointelegraph’s false ETF approval news on Monday. On-chain data shows that the number of BTC holders in profitable positions has reached a significant peak.
Meanwhile, technical analysis indicators highlight this weekend’s key resistance and support levels.
74% of Bitcoin Holders are Now in Profitable Positions
Bitcoin price cleared the $30,000 level on Friday, after a week-long consolidation phase at the $28,200 support level. On a more positive note, on-chain data now shows that the recent rally has propelled the overwhelming majority of BTC holders into profitable positions.
IntoTheBlock’s Historical In/Out of Money data groups the current Bitcoin holders’ according to their entry prices. By comparing their entry/purchase price to the current BTC market prices, it shows the number of holders In profit or loss positions (i.e. In/Out of Money).
The chart above shows that out of the 41.38 funded Bitcoin addresses, 34.06 million, or 70.41% of them are now in profitable positions. Moreso, 2.7% are at break-even while the 26.87% are currently underwater.
Typically, when the overwhelming majority of investors on a blockchain network, it implies that there’s an overall positive or optimistic outlook within underlying ecosystem.
In essence, without any mounting pressure of looming losses, BTC holders may not be looking to exit the markets anytime soon. Hence that optimism could see Bitcoin price rally gain more momentum to climb closer to $40,000.
BTC Price Forecast: Road to $35,000
Bitcoin (BTC) is currently trading at $29,500. Multiple attempts at the $30,000 level in the last 24 hours days appear to have weakened the resistance marginally. Hence BTC looks in prime position to push further toward $35,000.
In the daily time frame technical analysis, the Parabolic Stop and Reverse indicator also confirms this narrative.
The Parabolic SAR (Stop and Reverse) identifies potential reversal points in an ongoing market trend. The Parabolic SAR indicator dots for October 20 points toward $26,800 which is well below the current BTC price of $29,680. This alignment suggests a growing bullish trend.
Hence, a decisive breakout above the initial resistance at $30,380 could accelerate the rally further toward $35,000. However, the next significant resistance at $31,565 could pose a challenge.
On the downside, the $26,600 territory remains support level to beat.
This article was originally posted on FX Empire
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