Bitcoin Touched $28,500 Mark, Igniting Hopes for ‘Uptober’ Rally (Data)

Bitcoin has surged past the $28,400 mark for the first time since mid-August, sparking investor optimism that “Uptober” has arrived. Data indicates that BTC wallets have accumulated billions of dollars in the last month, potentially driving prices even higher.

A similar sentiment was voiced by experts who embraced the bullish outlook as the leading cryptocurrency surged to a six-week high.

Bitcoin Accumulation

According to Santiment’s latest analysis, Bitcoin wallets holding 10-10K BTC have refrained from outright trading or using their coins as collateral. Since September 1st, these wallets have raked in a total of 415,000 BTC which is worth around $1.17 billion. The accumulation comes in the backdrop of a prolonged slugging price movement.

The crypto analytic platform also suggested that Bitcoin’s return to a $30,000 market value appears increasingly plausible.

Nonetheless, if these wallets were to begin liquidating their holdings, it could potentially threaten the current bullish trend, putting it at risk of reversal.

🐳 #Bitcoin has blasted back above $28K for the first time since August 17th. With 10-10K $BTC wallets accumulating a combined $1.17B since September 1st, a return to a $30K market value looks more and more likely unless these wallets now start dumping. https://t.co/sdcPWGiBMg pic.twitter.com/zN741HmDqh

— Santiment (@santimentfeed) October 2, 2023

Uptober is Here?

“Uptober” refers to the historical trend of October typically being a favorable month for the price performance of Bitcoin and other digital assets. Based on CoinGlass data, October has recorded negative monthly returns on only two occasions since 2013.

The arrival of this trend was validated by Bitcoin’s abrupt jump north of $28,400 pushing weekly gains to almost 10%. The price action resulted in the liquidation of over $97 million of BTC shorts in the past 24 hours.

Despite certain negative predictions, experts suggest that the rally is expected to persist throughout October, a historically favorable month for cryptocurrency markets. In a statement to Bloomberg, Caroline Mauron, co-founder of digital-asset derivatives liquidity provider OrBit Markets said,

“There appears to have been significant buying flows, possibly driven by the start of a new accounting quarter, and the resulting moves were exacerbated by scarce week-end liquidity.”

The rally has also received a boost from speculation that the US Securities and Exchange Commission (SEC) will ultimately grant approval to BlackRock Inc.’s Bitcoin ETF proposals.

Moving forward, Bitcoin is poised to encounter significant resistance at the $30,000 level as the next major hurdle in its upward trajectory.