Bitcoin [BTC] is demonstrating remarkable resilience amid the anticipation of a potentially bullish final quarter in the cryptocurrency market.
At the current moment, Bitcoin is being exchanged at $64,000, having reached a peak of $66,000 just three days ago. The recent minor dip may indicate a brief correction, but data from on-chain transactions reveals a movement of BTC away from exchanges and into cold storage wallets.
This shift in behavior suggests that investors are amassing Bitcoin in preparation for a potential rally, reflecting a heightened confidence in the long-term price stability of Bitcoin.
Bitcoin Switches to a Bullish Support Zone on a Weekly Basis
The migration of Bitcoin away from exchanges reinforces the optimistic outlook, with BTC now trading above the support threshold of the bull market.
Bitcoin has been hovering around this critical level but has successfully managed to close above the support band for the second consecutive week.
If Bitcoin sustains this upward momentum, it could surpass the support band and trigger a more significant upward trend that might potentially break all-time highs.
In the past, Bitcoin has seen its strongest fourth quarters after a positive September. In 2024, it has already registered an increase of over 8% in September.
This lays the foundation for a potential climb to new peaks in November, as previously forecasted by CryptoWatch.
This performance reinforces the argument for an optimistic perspective, with Bitcoin likely to ascend even further in the weeks to come.
Profits for Short-term Bitcoin Holders
The recent price movements of Bitcoin have resulted in profits for short-term holders. These investors, who have shifted their BTC within the past 155 days, are now experiencing gains as the price trades above the $63,000 mark.
This price level is anticipated to serve as a support point, possibly propelling Bitcoin to higher levels.
The renewed profitability for short-term holders aligns with the broader trend of Bitcoin leaving exchanges, further strengthening the positive outlook.
Bitcoin’s Engagement in Decentralized Finance (DeFi)
Another factor amplifying Bitcoin’s bullish momentum is the soaring demand for BTC in decentralized finance (DeFi). Currently, 1% of Bitcoin’s total supply is locked in DeFi platforms.
This trend is being sparked by the increasing hunger for Bitcoin-based returns and the introduction of Coinbase’s new Bitcoin-based token, cbBTC.
As more Bitcoin gets locked in DeFi, the scarcity of BTC in traditional markets rises, potentially pushing the price upwards.
The diminishing availability of Bitcoin on exchanges, coupled with its expanding utilization in DeFi applications, paves the way for significant price surges in the upcoming months.
These progressions instill further confidence in the optimistic outlook as the market moves into the final quarter of the year.
The current robustness of Bitcoin, the escalating accumulation, and the growing demand in DeFi hint at a favorable path for its price.
If Bitcoin manages to uphold these trends, it could break into new peak territories before the year concludes. Investors are keeping a close eye, anticipating Bitcoin to outperform as the market enters a historically buoyant period.