Key Points
- More traders are borrowing USDT to buy Bitcoin during price dips, indicating a positive outlook for Q4.
- Bitcoin’s current price action and liquidation heatmap suggest potential upward movement.
Bitcoin [BTC] seems to have found a temporary bottom near the midpoint of its seven-month downward trend.
After briefly reaching $66K, BTC started to correct, leading to speculation about a possible bullish momentum in the broader cryptocurrency market in Q4.
Shifting Borrowing Trends
An intriguing trend supporting this optimism is the shift from borrowing BTC during price surges to borrowing USDT during price dips.
Traders are increasingly borrowing USDT to buy Bitcoin during dips, which is seen as a positive sign for the upcoming quarter.
Bitcoin’s current price action further supports this bullish outlook.
After breaking the market structure of the BTC/USD pair, the price dropped to establish a higher low following significant long liquidations.
Market Indicators
Additional metrics like the Bitcoin Short-Term Holder MVRV and SOPR also indicate positive outcomes.
Both these metrics are retesting their neutral “1” line, suggesting that if they bounce from this position, it will confirm a more bullish outlook for BTC.
The Bitcoin liquidation heatmap reveals that a significant amount of liquidity now sits above the current price level.
The most substantial liquidity zone lies between $63K and $66K, implying Bitcoin could experience a “short squeeze” if upward momentum gains traction in the coming days.
Bitcoin appears to be well-positioned for potential gains as Q4 progresses.
Metrics such as increased USDT borrowing, the establishment of a local bottom, and the liquidity heatmap all point to a bullish outlook.
With the $70K level in sight, BTC may be gearing up for a strong finish to the year, rewarding traders who have positioned themselves for the next leg up.