Essential Highlights:
- According to Santiment’s data, the number of Bitcoin addresses holding between 10 and 10,000 BTC has reached a new peak of 20,338, indicating growth since mid-July.
- Bitcoin’s value closed above both its 50-day EMA and 50-day SMA once again.
- Analyst Ted pointed out that $80,500 serves as a crucial support level for Bitcoin in the short term.
On October 16, Bitcoin’s price climbed back above $82,000 after dipping below $80,000 in the prior session. This bounce followed a three-day decline that affected the broader cryptocurrency market.
In parallel, Santiment noted that the number of wallets containing between 10 and 10,000 BTC has hit a record high of 20,338. This achievement reflects ongoing growth in large-balance addresses, despite market fluctuations.
However, the resurgence of outflows from U.S. spot Bitcoin ETFs has added complexity to the recovery scenario. Market participants are keenly watching whether Bitcoin can sustain support around the $80,500 mark and push back toward higher resistance levels.
Bitcoin Price Rebounds Above $82,000 Following Recent Decline
On October 16, Bitcoin was priced at approximately $82,323, marking a recovery from the previous day’s drop below $80,000. The price decline coincided with the release of September’s U.S. consumer inflation report, which surpassed market expectations. The annual inflation rate climbed to 3.7%, raising concerns about the Federal Reserve’s interest rate strategy.
As the market digested the news, Bitcoin and other significant cryptocurrencies experienced a downturn, but the recent recovery marked the end of a three-day losing streak, leaving BTC still underneath the $83,500 to $84,000 range observed prior to the latest decline.
The price of Bitcoin has also remained below its recent highs around $87,000, achieved earlier in October.
Record Number of Bitcoin Whale Wallets Observed
Santiment has reported that 20,338 wallets now hold between 10 and 10,000 BTC, the highest observed in their data. The number of these large wallets has been steadily increasing from mid-July through mid-October, continuing through various periods of Bitcoin price volatility.
Santiment tracks these addresses, as wallets with larger Bitcoin balances generally respond to market fluctuations. The firm indicated that this surge in wallets signifies that significant holders are maintaining their positions during price fluctuations.
It’s important to note that a wallet doesn’t always represent a unique investor. Multiple addresses can be controlled by exchanges, custodians, or individual users, and a single address might serve several clients. Thus, the record number of wallets illustrates the distribution of addresses rather than individual investors.
Bitcoin Price Holds Above Essential Moving Averages
Crypto expert Ted noted another day of Bitcoin closing above its 50-day exponential moving average and 50-day simple moving average. The daily trading data placed the exponential average around $81,506, while the simple average came in at about $81,298.
Ted highlighted $80,500 as a critical level to keep an eye on for continued buyer dominance. This threshold is situated below both moving averages and aligns closely with the area Bitcoin traded during its recent bounce.
Additionally, his chart indicates that the upper boundary of a longer-term bullish market support band is positioned near $75,672, with the lower boundary around $71,156.
Bitcoin ETF Outflows and Resistance Points
U.S. spot Bitcoin exchange-traded funds saw around $261.4 million in net outflows on the day the inflation report was released, with preliminary analysis showing lesser withdrawals in the following session.
The next resistance zone is anticipated to be between $83,500 and $84,000, the price range Bitcoin occupied before its recent decline. Beyond this, previous price movements indicate that $85,000 to $87,000 will be key levels to watch. Bitcoin nearly reached $87,000 earlier in the month before sellers pushed prices down.
On the downside, $80,500 remains the critical level identified by Ted for assessing the current recovery effort. A drop below $80,000 would shift focus back to the $78,000 level, while a sustained advance past $84,000 would indicate a more significant recovery.
This article is meant solely for informational purposes and should not be construed as financial or investment advice.
The article originally published as Bitcoin Price Recovers as Wallets Holding 10 to 10,000 BTC Hit Record High can be found on The Market Periodical.