Bitcoin [BTC] experienced significant selling pressure last week, resulting in a 1.67% decline in its price. However, the market has recently displayed signs of recovery, with BTC registering a 1.30% gain over the past 24 hours.
Experts are optimistic about sustained growth, as historical data and various indicators suggest that Bitcoin could exceed its recent 15.27% surge and advance further in the coming weeks.
Historic Data Indicates a 7% Drop Followed by a Significant Price Rally
In a recent post on X (formerly Twitter), crypto analyst Carl Runefelt pointed out that Bitcoin is currently at a pivotal juncture similar to October 2023.
He commented:
“Bitcoin experienced a 7% drop at the start of October 2023, and now it has seen a comparable decline!”
Based on the chart provided by Runefelt, if this historical pattern repeats, BTC could potentially surge by around 66.76%, possibly reaching $100,000. Nonetheless, it is important to mention that in 2023, the pre-consolidation rally only saw a 35.43% increase.
The likelihood of Bitcoin witnessing a similar upward trend remains uncertain. Market experts have assessed various metrics to evaluate investor activities and offer insights into potential developments in the upcoming trading periods.
Traders Withdraw from Exchanges, Boosting Bitcoin Demand
The total supply of BTC on numerous crypto exchanges, as indicated by the Exchange Reserve metric, has consistently dwindled since October 3rd.
Currently, only 2.57 million BTC are held on exchanges, down from 2.58 million, suggesting that traders are increasingly opting to secure their Bitcoin off-platform, a sign of growing trust in the cryptocurrency. This trend has also fueled heightened demand for BTC.
Another validation of this buying pressure comes from CryptoQuant’s Exchange Stablecoin Ratio. A low ratio for BTC signifies that available stablecoins are likely being utilized to purchase Bitcoin, thereby elevating its price. The current ratio stands at 0.00009506 and continues to decline.
If these metrics sustain their downward trend, it is probable that BTC will maintain its upward trajectory, given the increasing bullish sentiment prevailing in the market.
While these are compelling bullish signs, additional metrics identified by Market Insights also reinforce this positive outlook.
Short Traders Encounter Losses as BTC Gains
Over the last 24 hours, numerous short traders have faced liquidation as Bitcoin’s price moved against their bearish forecasts.
Data from Coinglass shows that approximately $41.80 million worth of short contracts on BTC were wiped out, underscoring a strong shift towards bullish sentiment in the market.
Moreover, Open Interest, a critical metric tracking trader activities, indicates a bullish trend, with a 3.66% rise pushing the total to $34.08 billion.
If this trend persists, BTC’s upward momentum is likely to continue, affirming the prevailing bullish sentiment among traders.