Bitcoin (BTC) Dips Below $28,000: Here’s What to Know

Bitcoin recovered above the much-coveted $28,000 level on Oct. 6, reaching highs of $28,288. In the days following, Bitcoin oscillated back and forth near the $28,000 critical level but was unable to surpass the $28,110 mark.

Santiment, a blockchain analytics start-up, provides a context for what happened in the last few days regarding the Bitcoin price, which partly triggered the rise to $28,000 and also hampered the price advance.

📊 #Bitcoin had its most coins (over 10K $BTC) moving off exchanges since September 7th, and #crypto’s top market cap asset is making a 2nd run at crossing a $28K market value. Utility will be important here, as unique addresses have fallen to 6-week lows. https://t.co/JoJv9YYJsA pic.twitter.com/3JELGuzJRG

— Santiment (@santimentfeed) October 8, 2023

Bitcoin had the most coins, with over 10,000 BTC moved off exchanges since Sept. 7 as it made significant efforts to stay over $28,000.

Tokens taken off exchanges might be a positive indication because it suggests that investors are transferring their coins to cold storage with no intention of selling.

According to Santiment, Bitcoin experienced its largest exchange outflow in a month, with the supply of BTC on exchanges falling to 5.68%, the lowest since 2017.

Despite bulls’ efforts, one ingredient was missing to further fuel bullish action: utility. As a result, the bulls’ attempts stalled.

Santiment states that utility in this context might be an essential ingredient in a bullish Bitcoin move. Analysts often observe a positive correlation between increasing on-chain activity and the price of Bitcoin.

In this regard, Bitcoin’s unique addresses are currently at six-week lows. Bitcoin active addresses at 862,000 mark the lowest since Aug. 26.

At the time of writing, BTC was down 1.21% in the last 24 hours to $27,517. The current market environment reflects high instability; hence, Bitcoin and the rest of the crypto market are losing ground in early Monday trading.

Meanwhile, Bitcoin must remain above $27,000 to prevent bearish momentum from forming. If Bitcoin falls below $26,700, a retest of the $26,000 mark is possible.

A plausible setting would be for Bitcoin to remain in its current trading range of $27,000 to $27,500, with the possibility of reaching $26,700 or $27,800 in negative or positive scenarios.

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