Key Points
- Bitcoin shows signs of recovery after a sharp decline, with potential for further growth.
- Increasing demand from ETFs and strong whale activity suggest a likely upward trend.
Bitcoin [BTC] has demonstrated resilience after a significant drop due to geopolitical issues between Israel and Iran. At present, Bitcoin is trading around $62K, showing potential to reclaim the $63K mark.
The recent liquidation of long positions could have established a local bottom, hinting that BTC might be ready for a further upward movement. This bottom could serve as the month’s low.
Liquidity Levels and Future Predictions
Key liquidity levels remain steady between $68,900 and $69,300 above the current price, and $56,800 to $57,400 below. A fresh liquidity cluster is also appearing in the $66,500 to $66,800 zone, indicating that the price might target this area shortly.
Despite the price of BTC fluctuating between $55K and $75K for over 200 days, Bitcoin remains in a strong position. It is trading above the 100-week moving average (100MA) on the weekly chart, showing strength on a macro level.
Indicators of Growth
The Coinbase Premium tool on CryptoQuant suggests a short-term BTC increase. Historically, when a golden cross forms, Bitcoin often experiences a short-term boost. This indicator provides additional evidence that BTC could rise from its current local bottom.
The demand for Bitcoin from U.S. spot ETFs has been on the rise as well. At the start of September, spot ETFs were net sellers, but by month’s end, they had bought 7K BTC, the highest level since July 2021. If this buying trend continues, Bitcoin’s price could rise even further in the final quarter of 2024.
Large Bitcoin holders, or “whales,” have shown historically low levels of profit-taking, indicating confidence in future price growth. Despite some recent selling, whales have taken minimal profits compared to previous cycles, further supporting the idea that BTC’s price will rise from here as they seek to maximize their gains.
A combination of liquidations, increasing demand from ETFs, and strong whale activity suggests that Bitcoin is poised for further gains from its current local bottom. These factors indicate a likely upward trend for BTC in the near future.