Bitcoin Price Hits Monthly High Amid Positive On-Chain Data

According to Cointelegraph, Bitcoin (BTC) price reached a new monthly high of $68,400 on October 16, marking a higher-high pattern in the market. This surge followed a sharp hourly correction of 3.41% on October 15. Alongside the price increase, BTC’s on-chain data also shows positive improvements, with active addresses indicating a rise in market demand and user activity. As Bitcoin's price hovers near the $70,000 level, analysts are focusing on a key price range that could either lead to a short-term correction or disrupt a six-month downtrend. After reaching an all-time high of $73,881 in March 2024, Bitcoin has been in a 217-day downtrend, forming a series of higher lows and lower lows within a descending broadening wedge pattern. The weekly chart shows BTC's fourth attempt to break above the 217-day upper trendline, which could significantly impact its price trajectory. Previously, Cointelegraph reported that the range between $68,300 and $67,300 is crucial for BTC to flip into support to disrupt the ongoing downtrend. Veteran trader Peter Brandt also highlighted this range, suggesting that Bitcoin is currently 'in the window' and questioning whether it will escape through the window or have it slammed shut. Meanwhile, independent trader BitQuant believes that after breaching $70,000, Bitcoin is likely to consolidate between $95,000 and $75,000. While Bitcoin's price may face short-term volatility, improving on-chain metrics indicate a bullish trend over the long term. Data from Cryptoquant shows a significant surge in active addresses since early September. The Bitcoin active address momentum indicator has reversed its downtrend and has been rising for the past 45 days. The indicator moving above both the 30-day and 365-day moving averages signals a positive shift in user engagement and demand. Cryptoquant analysis suggests that active user participation has historically been a critical parameter in every bullish cycle, indicating that demand is returning to the network. With Bitcoin's dominance reaching a three-and-a-half-year high, the bullish sentiment around the largest cryptocurrency continues to build despite a rocky start to October.