Tuesday, October 10, 2023, marked a significant day for Bitcoin as its price dipped below $28,000 amidst escalating tensions in the Middle East. This drop was evident in on-chain data analysis and marked a four-month low for the cryptocurrency. Despite this decrease, Bitcoin managed to retain a support level at $27,500.
The Glassnode chart revealed a decline in new Bitcoin addresses with only 367,874 created on October 8. This trend suggests that investors could be shifting towards traditional safe haven assets due to global macro events.
However, despite the bearish market sentiment and potential for further price drops, crypto-native investors demonstrated increased confidence in Bitcoin. Its market dominance (BTC.D) surpassed 51% for the first time since July 12. This increase is largely attributed to the economic uncertainty stemming from the ongoing Middle East crisis.
The Global In/Out of the Money (GIOM) charts pointed out that if bearish sentiment continues, the critical $25,000 support level for BTC could strengthen. These charts also highlighted that 1.57 million addresses purchased 794,850 BTC at a minimum price of $26,600, indicating resistance to a further price drop.
Overcoming resistance at $29,000 is crucial for BTC price to hit $30,000. The GIOM charts showed that about 3.7 million current addresses bought 1.77 million BTC at an average price of $29,020. If market fear, uncertainty and doubt (FUD) grow further, it could trigger a bearish Bitcoin price reversal.
In conclusion, while Bitcoin’s price has been affected by the escalating Middle East tensions and global macro events, it still holds a strong position within the cryptocurrency market. The increase in its market dominance and resistance against further price drops demonstrate investor confidence in the face of economic uncertainty.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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