Macro + technical in-depth analysis after Bitcoin crossed $35,000

In the early morning of October 24, Bloomberg ETF analyst Eric Balchunas posted on social media that BlackRock's spot bitcoin ETF, iShares Bitcoin Trust, has been listed on the American Securities Depository Clearing Corporation (DTCC) website, and the stock code will be IBTC. It is reported that DTCC is the world's largest financial transaction background service provider, responsible for processing Nasdaq transactions.

IBTC is the first proposed spot Bitcoin ETF to be listed on the DTCC (there are no other ETFs yet), and BlackRock is quick to move on these preparations (funding, ticker, DTCC) as they receive signals that approval is certain/imminent.

Or affected by this news, the price of bitcoin rose rapidly, once breaking through $35,000, the crypto community can't help but ask - is the bitcoin bull market rally getting closer and closer? Next, let Bitkoala Finance conduct an in-depth analysis from the macro and technical levels.

First of all, the macro level is indeed positive. **

The rally was mainly stimulated by the expected approval of the Bitcoin spot ETF, and in addition to BlackRock, other crypto ETFs in the application also brought more good news to the market. The Washington D.C. Circuit Court of Appeals formally ruled on Grayscale's lawsuit with the U.S. Securities and Exchange Commission, requiring the SEC to reconsider its application to convert Grayscale's Bitcoin trust GBTC into a Bitcoin spot ETF.

Not only that, Grayscale's Ethereum ETF has also ushered in its own milestone moment and made significant progress. Nate Geraci, president of The ETF Store, said in a social media post that the U.S. Securities and Exchange Commission has recognized Grayscale's spot Ethereum ETF filing, and the advent of spot ETFs will also bring more incremental funds to the market, which in turn will push the price of bitcoin up. (Bitkoala Finance reminds that this recognition only means that the SEC accepts its application and is about to enter the formal review process.) Final approval is still quite some way off. ）

So, what are the positive signals from the technical level? **

1. Bitcoin holdings are close to seventy percent of the total circulating supply

According to a recent IntoTheBlock analysis (as shown in the chart below), the amount of BTC in Bitcoin holders' accounts has recently hovered near all-time highs, with the underlying volume reaching 13.45 million BTC, or about 69% of Bitcoin's circulating supply. Why is the amount of BTC in circulation held by holders an important observation? Well, the indicator highlights why Bitcoin has remained relatively strong to some extent, as there is still a lot of liquidity in the cryptocurrency, which could also explain why confidence in Bitcoin above the $25,000 price range was previously maintained.

2. Bitcoin's current price level is still not in the range of a surge in selling pressure

The fact that the price of Bitcoin is actually higher than at the beginning of 2023 has also led to recent speculation that BTC may be on the verge of a long-term rally, nevertheless, it must be admitted that since April, Bitcoin has been hovering between support and resistance, with support at $25,000 and resistance at $31,000, and now that this resistance has been successfully broken, Bitcoin still has some upside before retesting the next support level.

Bitcoin's latest performance underscores confidence in its long-term prospects, which may explain why the cryptocurrency's current ability to withstand short-term sell-offs underscores confidence in its long-term prospects. This may explain the current strength of cryptocurrencies and their ability to withstand short-term sell-offs.

3. The total number of addresses on the Bitcoin chain hit a record high

Another technical indicator worth noting, namely, the total number of addresses on the Bitcoin chain recently hit a record high of 1.2 million (as shown in the chart below), which means that the number of people using the network is increasing, and in addition to recent demand, as of press time, Bitcoin futures holdings have also soared to a two-month high, all of which reflect the recent outbreak of bullish demand.

However, how long can this rally last? Whether it is the start of the next bull market or a flash in the pan, perhaps only time will give us the answer.