Analysts predict that a rally is in the making despite $244M in Bitcoin shorts sitting at $61K.
- $244M Bitcoin in new shorts will be liquidated at $61K, and $9.17B Bitcoin at $68K. Still, the realized price, high whale ratio, and new ATH in money supply suggest buying BTC.
The Bitcoin [BTC] market is currently uncertain, struggling to maintain a clear upward trajectory after recovering from the downturn on the 5th of August, caused by Japan stocks crash.
As of time of press, BTC remained just under the $60K level, but challenges remained. A cluster of 4,000 new shorts lie in wait, with spot sell orders just above $61K.
So, BTC could break the $60K price level overnight, but stall at $61K. This was the downside as high-leverage long liquidations loomed around the $58K price mark.
Source: Coinglass
Additionally, $9.17 billion in Bitcoin shorts could be liquidated if BTC reaches $68K, which also threatens its ability to reach new highs.
However, other data supports BTC’s continued recovery, potentially reaching a new ATH by Q4 2024 or Q1 2025.
Bitcoin: Buying opportunity ahead?
Bitcoin recently dropped below the 200-day Simple Moving Average but has double bottomed, a key indicator for long-term trends continuation.
In a bull market, this dip can present a buying opportunity, suggesting a potential rebound.
However, if Bitcoin’s price remains below the 200-day SMA for an extended period of time, it could signal the beginning of a bear market.
Source: Glassnode
Despite this risk, analysts believe that Bitcoin is unlikely to enter a prolonged downturn at this stage.
The current situation suggests a temporary dip rather than the start of a bearish phase, with a strong possibility for recovery and continued growth.
Whale accumulate as global liquidity surges
Bitcoin whales are also increasing their holdings, indicating a potential price rise. Analysts note that large investors and traders are buying during the price dips, a pattern that often leads to price spikes.
This trend, coupled with recent halving events and growing institutional interest through Bitcoin ETFs, suggests that Bitcoin’s prices may rise soon.
Source: CryptoQuant
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The global money supply has also reached a new all-time high, boosting buying power and likely increasing Bitcoin’s price.
With more money in circulation, buying pressure rises, making Bitcoin a strong long-term investment. The continuous increase in money supply supports Bitcoin’s potential for future gains.
Source: Jamie Coutts, CMT
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Next: Whales help Litecoin surge 10.32% – Will LTC rally another 40%?
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