Bitcoin Network Turns Positive Bullish Signal for Investors

Coin World News Report:
BTC Rises to $70,000, Reversing Network Fundamentals
Despite the possibility of short-term adjustments and consolidations, is this a bullish signal?
Bitcoin [BTC]
Changes in Network Fundamentals
Positive
In October, analysts first recognized this as a positive mid-term signal for the asset.
According to CryptoQuant’s data
Positive
During a bull market, network indicators are a familiar trend, indicating positive outcomes for the asset despite possible adjustments or consolidations.
Following the recent rise to $70,000, the average number of active BTC addresses in the past 30 days has surged to over 1 million. It has reached the last level seen in June, indicating significant interest in the asset amidst last week’s sell-off.
What’s Next for BTC’s Rise?
The mining sector and network fees have also shown similar positive trends. It is worth noting that mining difficulty has reached an all-time high, indicating intense competition among BTC miners, which serves as a positive catalyst for BTC’s intrinsic value.
Furthermore, as of writing, the difference between BTC’s apparent demand or production and inventory plans has surged to a 6-month high of 256,000 BTC. In most cases, a surge in demand is accompanied by a rise in BTC price.
Despite these positive catalysts, analysts have mixed predictions for BTC price as the US election approaches.
Blockworks analyst Felix Jauvin
warns
that BTC may face range restrictions until the election is over.
“No one wants to be the marginal buyer here as we approach the elections. It might just be a lot of money until the elections are over…”
Another expert,
Justin Bennett
echoes his cautious sentiment, citing the lack of interest from whales in capitalizing on the recent mid-week dip.
Since October 17, the Whale vs. Retail Delta, which tracks whales’ positioning relative to retail traders, has seen a decline, indicating whales reducing their exposure to BTC.
Interestingly, options traders remain bullish, as evidenced by their increased purchases of call options (betting on BTC price rising) leading up to the election day.
In their daily update on October 22, trading firm QCP Capital
notes
that “short-term implied volatility peaks on election day, 10 trading days ahead of the previous expiry, and leans towards call options instead of put options, despite BTC being about 8% off its all-time high.”