Is This Bitcoin Breakout Supported On-Chain?

Bitcoin On-Chain Activity Report, October 2024

On Monday, we looked at Bitcoin's breakout above $65,000 and asked if the move was overextended.

Our analysis focused on two key elements: the price action itself (via RSI) and the main driver behind it (the ETFs).

Today, we explore a question with longer-term implications: is this breakout supported by on-chain behaviours?

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Is This Bitcoin Breakout Supported On-Chain?

The Takeaway

Bitcoin's breakout above $65,000 shows promising on-chain support, unlike recent attempts. The on-chain activity is rising across multiple time frames, similar to patterns seen during the ETF launch. 

While ETF flows now dominate market movements more than whale activity, our models suggest Bitcoin could reach $100,000 in three months if on-chain momentum continues. The key test is maintaining both price and on-chain activity above the current level.

Waking Up Dormant Coins