Bitcoin Price Rebounds, Encouraging Signs of an Upward Trend
Bitcoin’s price has experienced a positive turnaround, igniting optimism for a potential uptrend in the cryptocurrency market. Despite facing a sharp decline due to geopolitical tensions between Israel and Iran, Bitcoin is currently trading around $62,000, showing promising indications of surpassing the $63,000 mark.
The recent liquidation of long positions appears to have set a local bottom, hinting at a possible upward movement for Bitcoin. Typically, during significant market downturns, long contracts see a rapid decrease in response to liquidations, which alleviates selling pressure.
Crucial liquidity levels have held steady, with support levels established between $68,900 and $69,300 above the current price, and $56,800 to $57,400 below it. Moreover, a new liquidity cluster is forming within the $66,500 to $66,800 range, indicating a potential price target in the near future.
Bitcoin’s Resilience and Market Position
Over the past 200 days, Bitcoin’s price has fluctuated between $55,000 and $75,000 but has remained resilient and maintained a strong market position. The cryptocurrency is currently trading above the 100-week moving average (100MA) on the weekly chart, showcasing stability at a macro level.
With Bitcoin now 170 days post the recent halving event, historical trends suggest that new all-time highs usually emerge around 1,080 days after the previous market cycle’s peak. This historical pattern implies that Bitcoin is likely to continue its upward trajectory from its current position.
Indicators Pointing Towards Positive Trends
A positive outlook is reinforced by the Coinbase Premium indicator on CryptoQuant, signaling a potential short-term Bitcoin uptick. Historical data indicates that when a golden cross pattern forms, Bitcoin tends to experience a temporary surge, adding further credibility to the possibility of a price rise.
Increase in Demand from U.S. Spot ETFs
Notably, demand for Bitcoin from U.S. spot ETFs has been on the rise. In early September, these ETFs were net sellers, but by month-end, they had accumulated 7,000 BTC—the highest volume since July 2021. In the first quarter of 2024, spot ETFs were acquiring nearly 9,000 BTC daily, propelling prices to new highs. Continued buying interest from these ETFs could potentially drive Bitcoin’s price even higher in the final quarter of 2024.
Stability Amongst Whales and Market Confidence
Furthermore, large Bitcoin holders, known as “whales,” have been indicating low levels of profit-taking, illustrating their confidence in the cryptocurrency’s future growth potential. These whales have been diversifying their BTC holdings across various addresses, with only 1,975 addresses now holding between 1,000 and 10,000 BTC. Despite some recent selling, whales have refrained from significant profit-taking compared to previous cycles, underscoring the belief that Bitcoin’s value is likely to appreciate further as they aim to maximize their returns.
With a combination of liquidation patterns, rising demand from ETFs, and confident whale activity, Bitcoin appears primed for further advancement from its recent local bottom. These factors collectively indicate a probable uptrend for Bitcoin in the immediate future.