Bitcoin [BTC] has successfully surpassed the crucial psychological barrier of $60,000, resulting in a significant number of short positions being closed in the past 24 hours. Leading up to this breakthrough in price, there was a noticeable increase in accumulation patterns from key addresses over the last three months.
Furthermore, the supply of BTC on exchanges has consistently decreased, with more Bitcoin being withdrawn from these platforms.
Breaking the Psychological Threshold
An examination of Bitcoin’s price movement on September 13 showed a strong upward trend, pushing BTC above the psychological barrier of $60,000. At one point, the price reached $60,543, marking a 4% increase in just 24 hours. This surge enabled Bitcoin to move above its short-term moving average (indicated by the yellow line), which had previously acted as resistance.
Although Bitcoin retraced slightly to $60,177 after the surge, the overall sentiment remains bullish. This sentiment is also corroborated by the Relative Strength Index (RSI) hovering around 55, indicating positive market momentum.
The breach above the short-term moving average and the sustained bullish RSI hint that Bitcoin might still be on an upward trajectory. The minor pullback could be temporary, with the potential for further gains if buying pressure continues to mount.
Bitcoin’s Continued Accumulation and Withdrawal Trend
Recent data has highlighted substantial Bitcoin accumulation and exchange withdrawals over the last few months, portraying a bullish trend.
As per Santiment’s data, addresses holding 10 BTC or more have accumulated over 28,000 BTC in the past three months. These major holders now possess more than 16 million BTC, indicating growing confidence in the asset.
Furthermore, Bitcoin dipped below $60,000 on August 29, implying that these addresses have been accumulating BTC at varying price levels. This strategic accumulation during price fluctuations suggests these holders are gearing up for potential future gains.
In addition, the supply of BTC on exchanges has significantly dropped, with 75,000 BTC being withdrawn in the last three months. This has left around 1.8 million BTC remaining on exchanges. The decrease in exchange supply is a clear bullish signal, signifying that holders are opting for long-term storage over selling, thereby tightening the available supply for trading.
If Bitcoin manages to maintain its current price level or move higher, the combination of accumulation and supply reduction on exchanges could further bolster the bullish momentum, propelling the price upwards on the charts.
Substantial Losses for Short Positions
The 4% surge in Bitcoin’s price during the recent trading session led to a significant closure of short positions.
According to the Coinglass liquidation chart analysis, short positions suffered liquidations exceeding $48 million by the end of trading on September 13. Contrarily, long positions experienced only $5 million in liquidations.
This liquidation event mirrors a similar occurrence on August 8 when Bitcoin’s price surged from $55,000 to over $61,000, resulting in a comparable rise in short liquidations.
This liquidation event coupled with broader bullish signals could further drive upward momentum in the short run.