Bitcoin’s Shift: Is a Major Breakout Approaching Soon?

• BTC’s market dynamics indicated a potential positive transformation.
• The number of users employing the BTC holding approach reached new milestones.

The downward trend for Bitcoin [BTC] and its subsequent stabilization since hitting a peak in March may be nearing an end.

Per insights from blockchain analytics firm Glassnode, the recent rally to $66K last week marked the first higher high since June.

Source: Glassnode

Moreover, several on-chain indicators recorded new highs, signifying rising evidence of a market structure transformation that may indicate the conclusion of the current Bitcoin re-accumulation phase seen since March.

“This price movement offers initial suggestions that the ongoing downtrend may be on the verge of a significant shift.”

Bitcoin cycle mirrors previous trends

Source: Glassnode

Despite an extended period of consolidation, BTC’s position matched that of past market cycles following cycle lows, showing an increase of over 300% from those lows, reinforcing the belief that BTC prices possess further upside potential. 

The optimistic outlook is further supported by the increasing number of users and whales employing the BTC holding method. Since May, the Long/Short-Term Holder Supply Ratio has risen to 5.4, indicating that users have been holding their BTC rather than selling.

“This suggests that HODLing remains the primary behavior among Bitcoin investors.”

Source: Glassnode

Nonetheless, around 6.5% of Long-Term Holders (LTH) had experienced losses by the 1st of October.

Nevertheless, Glassnode mentioned that the unrealized losses within the LTH group were relatively minor and consistent with prior re-accumulation periods.

Source: Glassnode

The analytics firm also noted that the recent price surge pushed Short-Term Holders into profitability, a different outcome from the preceding weeks.

Together, these factors reinforced the notion of a possible market structure transformation that could extend the re-accumulation phase.

However, Peter Brandt expressed that a shift in market structure might only occur if BTC exceeds $71K.

As of the latest updates, BTC was struggling to maintain the key $60K psychological level following a recent sell-off.