On-chain metrics for the leading cryptocurrency indicate a short-term local peak ahead of the US elections. This conclusion was reached by Copper, as reported by The Block.
According to analysts, 98% of wallet addresses are currently in unrealized profit. Historically, a sharp rise in this metric—recently reaching 75%—has often been accompanied by increased selling pressure.
“The market is experiencing a temporary peak ahead of the US elections,” the review states.
As a weakness, experts also noted the price’s inability to break through the upper boundary of a multi-month consolidation amid active inflows into ETF.
On October 22, a positive seven-day streak was interrupted as investors withdrew $79.1 million from products.
CryptoQuant noted an improvement in the medium-term outlook for Bitcoin, evidenced by rising hash rate and mining difficulty. This suggests digital gold’s appeal to institutional investors.
According to analysts, the number of active addresses over a 30-day period has been increasing since mid-September, alongside the volume of fees paid. This combination creates conditions for price appreciation.
Experts believe that current fundamental indicators resemble patterns from previous bull runs.
“Even if a correction or consolidation occurs, there is a high likelihood of a positive trend,” they concluded.
Earlier, QCP Capital noted high chances for Bitcoin and Ethereum to break through resistances at $70,000 and $2,800, respectively.