Bitcoin Sellers In Fear As Buyers Knock $28.5K! Will On-chain Data Hold BTC Price?

Buyers are aggressively buying Bitcoin today, causing its price to surge past several Fibonacci levels. At the moment, Bitcoin is gearing up for another significant uptrend, tapping the $28.5K mark, much to the dismay of sellers. On-chain statistics show interesting bullish indicators, putting those in short positions in a trap.

Bitcoin’s Outflow Surges To 1-Month High

It seems that the ‘Uptober’ trend is becoming true as Bitcoin unexpectedly surged past the $28,000 mark today, a level not witnessed since August 17th. This rise has renewed the excitement of crypto enthusiasts and traders. Coinglass data reveals that short-positions worth around $43 million were liquidated over the last 24 hours as BTC price didn’t meet sellers’ expectations near resistance levels.

According to Glassnode, the mean liquidation of short-positions has reached a three-month high of $86,186, suggesting a mood-off among sellers. Moreover, BTC’s bearish pullback chances have been reduced as UTXO in profit touches a 1-month high of 124,953,234.

UTXO represents the unspent Bitcoin after a transaction. If UTXO is in profit, the unspent Bitcoin’s value is higher than its last transaction. A high profitable UTXO suggests many Bitcoin holders are in gain, boosting confidence and reducing the likelihood of panic selling, thus stabilizing the price and decreasing the odds of a sharp downturn. 

Moreover, with the surge in exchange outflows, which recently hit a 1-month high of 1,275 BTC, there’s a noticeable reduction in Bitcoin’s availability on trading platforms.

This significant dip in exchange reserves, which are often used for selling purposes, reduces the chances of Bitcoin being offloaded in the market. As a direct consequence, those holding put positions find themselves in a tight spot, while the confidence among buyers is boosted. This renewed trust could very well catalyze an upcoming buying wave for Bitcoin.

What’s Next For BTC Price?

Bitcoin has consistently traded above its moving averages, signaling a bullish trend. After breaking above $28K, BTC price is now attempting to surge above $28,500. As of writing, BTC price is trading at $28,321, surging over 4.45% from yesterday’s rate.

While bears attempt to stop the rally at around $28,500, the bulls are showing confidence, indicating that minor dips are being promptly bought up. This heightens the likelihood of surpassing the $28,500 mark. If achieved, the BTC price might challenge the key resistance at $30,100, where bears might intensify their selling efforts.

If the price sharply drops from $28,000, it could revisit the 20-day exponential moving average, priced at $27,461. A robust rebound from this point could send the price beyond $28,500.

However, this bullish outlook could be short-lived if the price plunges below the EMA20 level.  The RSI level on the 4-hour price chart is trading above the overbought region, strengthening the chances of a minor downward correction in the coming hours.