Bitcoin braces for further rally after breaking $63,000 – Bitfinex

According to the latest edition of the “Bitfinex Alpha” report, Bitcoin (BTC) is poised for gains as key on-chain indicators hint at the possibility of further upside after clearing a key resistance level at $63,000. There is a possibility that it will continue.

Bitcoin hit a daily and local high of $66,288 on October 14 following a ferocious rally that reignited traders' optimism on the “Uptober” theory.

At the time of writing, BTC was trading at $65,854, up 4.8% in the past 24 hours, based on CryptoSlate data.

Key indicators are bullish

The Realized Price of Unspent Transaction Output (UTXO) age band is an important market indicator and is commonly used to segment Bitcoin holders by their average acquisition price based on their holding period.

Historically, the realized price for short-term holders (addresses holding BTC for less than 155 days) and medium-term holders (addresses holding BTC for 6 to 12 months) has served as a key threshold.

If Bitcoin fails to break out of these levels, it often indicates a bearish trend. Conversely, a break above these signals renewed bullish momentum and indicates that new buyers are comfortable holding above these levels.

Bitcoin was trading between two major realized price zones: around $63,000 for short-term holders and around $55,000 for intermediate-term holders.

The report highlighted that BTC above $63,000 could set the stage for further upside, which is currently underway. Furthermore, if the resistance is not broken, the price could fall to $55,000.

Despite breaking through the $63,000 resistance, BTC still needs a solid daily close above this level to convince the market to chase higher, the report added.

Markets are showing resilience

The move seen on October 14th came despite Bitcoin's struggles last week, when it crashed to $58,943.

This volatility was primarily driven by spot selling on centralized exchanges, particularly Coinbase, with selling pressure increasing as Bitcoin fell below $59,000.

Coinbase Premium Gap, a key indicator that tracks the price difference between Coinbase and other exchanges, also fell 100 points, indicating weakness. Despite this, the market remained resilient and began to recover.

Despite Coinbase premium turning negative, the lack of widespread panic selling suggests underlying stability. The report warned that a short-term correction is still possible, but added that Bitcoin is poised for a strong rebound even if prices return to lower levels.

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