Bitcoin [BTC] is continuing its upward momentum as the cryptocurrency markets display signs of bouncing back from the recent slump.
On the hourly chart, BTC has finally broken free from the descending parallel channel that has been in place since the end of July 2024, a trend that lasted for over 50 days.
The price movement of BTC/USDT indicates a potential turning point for Bitcoin, with a classic retesting scenario. The price action has been forming higher peaks and higher troughs as it approached the resistance level for a breakout.
When markets consolidate over prolonged periods, it often paves the way for a parabolic surge. This could position BTC to target $75k, slightly surpassing its previous record high.
A rally towards this critical range is within reach if the market conditions continue to be favorable, given that BTC has reclaimed the $62k level and is now striving for $65k before potentially aiming for $75k in either Q4 2024 or early Q1 2025.
Can this uptrend propel BTC to $75k by the end of the calendar year? Let’s explore the possibilities.
Analysis of Average Leverage Delta among Top Traders…
Traditionally, when the average leverage delta of top traders falls below +2, as it recently did before rising to 2.169, an uptrend frequently ensues.
This further strengthens the belief that a Bitcoin rally might be underway. The current leverage delta for BTC stands at +0.49, indicating that both longs and shorts are using leverage almost equally.
The decline in the average leverage delta of top traders lends support to the hypothesis that the breakout of BTC/USDT from the descending trend channel could mark the start of a bull market.
Visualization of BTC Liquidation Heatmap
Moreover, Bitcoin’s price tends to gravitate towards areas of high liquidity. Traders were liquidating around $179.70 million in futures markets when BTC hit $61,498.
This liquidation action could potentially propel further upward movement as the price gravitates towards liquidity at higher levels.
There is a major liquidity concentration of $730.49 million at the price point of $70,182, and an additional $1.3 billion at $67,250.
BTC might ascend to these liquidity zones, further boosting its upward trajectory and possibly reaching the $75k target.
Analyzing the Typical Bitcoin Cycle
Additionally, the usual Bitcoin cycle historically kicks off 170 days post-halving and peaks 480 days after that.
Presently, BTC is 151 days post-halving, positioning it less than 20 days away from the customary start of a post-halving rally.
This cyclical pattern adds an extra layer of confidence to the potential climb towards $75k, alongside the signal from the average delta of top traders pointing towards a bullish trend.
Source: X
The cryptocurrency market seems ready for a positive upswing, backed by technical indications and liquidity trends that suggest Bitcoin is geared up for further upward movements.