The price of Bitcoin [BTC] is approaching the $70,000 mark, a significant milestone considering its recent struggles to stay above $60,000.
There has been a noticeable shift in the market dynamics, providing an advantage for bullish investors to drive the price higher.
Over the past six days, Bitcoin has shown strong demand, indicating that the bulls have regained control after a period of consolidation in the first half of October.
It appears that Bitcoin is once again gathering momentum similar to that seen in September.
Several factors point towards a potential $70,000 price target for Bitcoin in the coming days or weeks.
In the last 24 hours, Bitcoin experienced considerable volatility, including a wave of selling pressure that briefly pushed it below $68,000.
However, a renewed surge in demand quickly reversed the downward trend and prevented further losses.
Bitcoin Bounces Back Despite Leverage Pressures
Bitcoin’s extreme volatility in Tuesday’s trading session hinted at a shake-off of leveraged positions, with its Open Interest reaching an all-time high.
Moreover, the estimated leverage ratio also reached a new local peak, raising concerns about potential liquidations.
High leverage combined with increased open interest often leads to forced liquidations, particularly during periods of excessive optimism. However, Tuesday’s session defied expectations as demand quickly pushed the price back above $67,000.
The market reaction underscored growing confidence in Bitcoin’s ability to continue its upward trajectory, bolstered by significant accumulation by Bitcoin exchange-traded funds (ETFs).
Recent reports indicated that Bitcoin ETFs acquired more than $500 million worth of BTC in the past 24 hours, with a similar figure recorded on October 14th. This surge in institutional demand has tilted sentiment towards the bullish side.
This renewed institutional interest is contributing to Bitcoin’s resilience against downside pressure and reinforces the anticipation of a breakout above $70,000 in the near future.
Additionally, the upcoming U.S. elections could serve as a significant catalyst, potentially fueling further gains in Bitcoin prices depending on the election outcome.