Bitcoin [BTC] is showing remarkable resilience amidst the crypto market gearing up for a potentially bullish final quarter this year.
At the moment, Bitcoin is priced at $64K, slightly down from the recent peak of $66K recorded three days ago. However, the movement of BTC from exchanges to cold wallets suggests a short-term correction, while on-chain data signals growing investor confidence in Bitcoin’s future price stability.
Bitcoin Surpasses Bullish Support Levels Weekly
The shifting of Bitcoin away from exchanges aligns with the bullish narrative as BTC now stands above the critical bullish support range.
BTC has been hovering around this crucial level and has managed to close above the band for two consecutive weeks now.
If Bitcoin maintains its current momentum, it might outgrow the support band, setting the stage for a substantial upward push that could potentially break previous all-time highs.
Traditionally, Bitcoin tends to have strong fourth quarters following a robust September. In 2024, it has already posted a gain of over 8% this September.
This could pave the way for a potential surge to new highs in November as projected earlier by CryptoCrypto.
This performance bolsters the bullish case, with BTC likely to climb further in the imminent weeks.
Short-term Holders Profit from Recent Surge
The recent price movement of Bitcoin has brought short-term holders back into the profit zone. These investors, who have transacted their BTC within the last 155 days, are now witnessing gains as the price hovers above $63K.
This price level is expected to act as a support, propelling BTC to higher levels.
The renewed profitability for short-term holders complements the broader trend of Bitcoin leaving exchanges, reinforcing the bullish sentiment.
Bitcoin Embraced in DeFi Platforms
Another factor contributing to Bitcoin’s uptrend is the surging demand for BTC in decentralized finance (DeFi). Currently, 1% of Bitcoin’s total supply is locked in DeFi protocols.
This rising trend is fueled by the growing appetite for Bitcoin-based yields and the introduction of Coinbase’s new Bitcoin-pegged token, cbBTC.
As more Bitcoin gets locked in DeFi platforms, its scarcity in traditional markets rises, potentially steering the price upwards.
The combination of reduced BTC availability on exchanges and its expanding utilization in DeFi suggests a promising outlook, hinting at significant price surges in the upcoming months.
These developments instill further confidence in the bullish narrative as the market approaches the year’s final quarter.
Bitcoin’s current resilience, increased accumulation, and rising DeFi demand point towards a positive trajectory for its price.
If BTC can uphold these trends, it might attain new peaks by the end of the year. Investors are closely monitoring the situation, anticipating Bitcoin to outperform as the market steps into a historically robust quarter.