Bitcoin (BTC) breached the $65,000 mark, renewing trader optimism about an “Uptober” rally that could extend the digital asset’s bullish momentum.

Has the Bitcoin rally finally arrived?

In the early morning hours of October 15, Bitcoin briefly topped $66,000 before recovering to $65,964 as of this writing. Over the last 24 hours, BTC has gained 1.4%.

According to A report thanks to cryptocurrency exchange Bitfinex, Bitcoin’s decisive move beyond the key resistance level of $63,000, combined with encouraging on-chain indicators, point to a further potential move higher.

The report mentioned that Bitcoin’s unspent (UTXO) realized price ranges are “a key on-chain indicator for measuring Bitcoin market dynamics.”

For the uninitiated, Bitcoin UTXO age ranges refer to the value at which different groups of BTC last moved – based on how long they have been held. Essentially, it helps track the average purchase price across different age groups of BTC holders, indicating market sentiment and the profitability of specific cohorts.

It is worth noting that average realized prices for short-term (3-6 months) and medium-term (6-12 months) holders have historically been key support or resistance levels. The short-term holder is priced at around $63,000 and the intermediate-term holder is priced at $55,000.

When Bitcoin’s price is below the average purchase price of these groups, it often signals a downward trend. Conversely, a move above these levels may indicate increasing momentum.

With BTC breaking above the $63,000 resistance, further gains could be seen. However, a failure to close above this level could result in a potential decline towards $55,000.

The market is showing mighty appetite for digital assets

The report highlights BTC’s tender price action on October 10, when it fell to $58,943 due to a lack of aggressive buying in the spot market. The report shows that most of the sales came from Coinbase.

The report mentioned the Coinbase Premium Gap Indicator (CPGI) – an indicator that shows the difference between the BTC-dollar pair on Coinbase compared to other major centralized exchanges.

The CPGI Index dropped 100 points as the BTC price fell below $59,000. The report noted that over the past year, whenever CPGI dropped below 50 points, the BTC price saw another spike. The report adds:

Over the past eight months, Bitcoin has traded in a wide range. When a bear market hits, selling typically occurs when Coinbase Premium turns negative. However, no such selling has been observed, suggesting that despite fluctuations, the market remains relatively stable without widespread disinvestment driven by fear. This resistance may indicate underlying strength or sustainable market sentiment that could influence future price movements.

This analysis is consistent with a separate report by crypto firm QCP Capital, which excellent that the shallow sell-off in the cryptocurrency market following geopolitical tensions between Iran and Israel indicates continued demand for risk assets.

In related news, BTC bulls will be relieved to learn that now-defunct cryptocurrency exchange Mt.Gox delayed its repayment by October 2025, which may ease the pressure on spot sales.

However, some analysts warn that BTC may face price capitalization due to tightening on-chain liquidity. At the time of writing, Bitcoin is trading at $65,964, up 1.4% over the past 24 hours.

Featured image from Unsplash, charts from CryptoQuant and Tradingview.com