Bitcoin’s price has displayed resilience following a significant drop caused by geopolitical tensions between Israel and Iran. Currently valued around $62K, Bitcoin is demonstrating signs of approaching the $63K mark.
The recent closure of long positions may have established a bottom, hinting at a possible upward movement for BTC, with this bottom representing the lowest point of the month.
During notable declines, long contracts often witness a sharp decrease due to closures, which helps alleviate selling pressure.
Crucial liquidity levels have remained stable at $68,900 to $69,300 above the current price and $56,800 to $57,400 below it.
A new liquidity cluster is emerging in the $66,500 to $66,800 range, indicating a potential target zone for the price in the near future.
Despite Bitcoin’s price fluctuating between $55K and $75K for over 200 days, it has maintained a strong position.
The cryptocurrency is trading above the 100-week moving average (100MA) on the weekly chart, demonstrating resilience at a macro level.
Interestingly, Bitcoin is now 170 days post the most recent halving event, and historical trends suggest that new all-time highs (ATHs) typically occur approximately 1,080 days after the peak of the previous cycle.
Thus, historical data implies that Bitcoin may be headed for higher price levels from its current position.
Indicator from Coinbase Premium
Further bolstering this optimistic outlook is the Coinbase Premium tool on CryptoQuant, signaling a short-term increase in BTC.
Historically, when a golden cross emerges, Bitcoin tends to experience a short-term surge, offering additional support for the potential rise in price from the current bottom.
Increasing Demand for US Bitcoin Spot ETFs
The demand for Bitcoin from U.S. spot ETFs has been on the rise. While spot ETFs were net sellers at the start of September, they purchased 7K BTC by the month’s end, marking the highest level since July 2021.
In the first quarter of 2024, spot ETFs were acquiring nearly 9K BTC daily, propelling prices to new peaks. If this trend of buying persists, Bitcoin’s value could see further growth in the final quarter of 2024.
Steady Holdings by Whales
Moreover, significant Bitcoin holders, known as “whales,” have been exhibiting historically low levels of profit-taking, indicating confidence in the cryptocurrency’s future price appreciation.
Whales have been redistributing their BTC among various addresses, with only 1,975 addresses currently holding between 1,000 and 10,000 BTC.
Despite some recent selling, whales have minimized profit-taking compared to previous cycles, further solidifying the belief that Bitcoin’s value will increase as they aim to maximize their profits.
A combination of liquidations, growing ETF demand, and robust whale activity suggests that Bitcoin is set for further gains from its current low point.
All these factors together indicate a probable upward trajectory for BTC in the immediate future.