The 2023-24 Bitcoin bull market has experienced a -26% drawdown on a closing basis, a figure consistent with prior uptrend cycles.
Despite Bitcoin’s historical resilience, the recent correction marks the most significant decline since the FTX collapse, highlighting a particularly challenging period for market demand.
However, larger stablecoin balances on exchanges have positively correlated with higher Bitcoin prices, indicating potential for upward movement.
Since January, USDT (ERC20) balances on exchanges have surged by 146%, rising from $9.2 billion to $22.7 billion, even though Bitcoin’s price has remained relatively flat.
Bitcoin is now gearing up for a showdown between key resistance levels of $64,000 and $55,000, linked to the realized price UTXO age bands. These price points represent the average entry levels for both short-term (3-6 months) and long-term (6-12 months) investors.
A break through the $64,000 resistance could ignite a bullish rally, while failing to surpass this level may lead to bearish momentum.
Whale activity in the $54,000 to $68,000 price range signals increasing confidence in Bitcoin’s future performance. Both seasoned investors and newcomers are accumulating Bitcoin, pointing to a potential price surge in the coming months.
One smart whale, who has earned approximately $181 million in profit from Bitcoin, bought another 200 BTC ($12.56 million) recently. This whale had previously accumulated 6,000 BTC at $26,429 between August 24 and September 2, 2023, and another 2,000 BTC at $44,381 before the Bitcoin ETF launch in January.
Additionally, on October 11, the total net inflow into Bitcoin spot ETFs reached $254 million, with Fidelity’s FBTC contributing $117 million and ARKB adding $97.58 million, further bolstering Bitcoin’s bullish outlook.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: thodonal/123RF // Image Effects by Colorcinch
An XRP ETF could launch soon enough in the United States (US) following applications by…
If you’re hunting for the next crypto that could deliver serious gains, look no further…
Remember when Bitcoin was so cheap that people thought it would never be a good…
Rune Christensen, the founder of Sky (formerly MakerDAO), is close to offloading the last of…
The price of $NEIRO, the native token of the Neiro project on Ethereum, has been…
In the past 24 hours, $AXL has seen a remarkable 42% price increase, further fueled…