Key Points
- Bitcoin market faces uncertainty with potential for new shorts to be liquidated at $61K and $68K.
- Despite the risk, Bitcoin whales are accumulating, suggesting a potential price rise.
Bitcoin is currently in a state of uncertainty, having difficulty maintaining a clear upward trajectory after recovering from the downturn on the 5th of August, triggered by a crash in Japan’s stock market.
At the time of writing, Bitcoin was just under the $60K mark, with challenges still ahead. A cluster of 4,000 new shorts are poised, with spot sell orders just above $61K.
Bitcoin’s Potential Hurdles
Bitcoin could potentially break the $60K price level overnight, but may stall at $61K. This is a downside as high-leverage long liquidations loom around the $58K price mark.
Furthermore, $9.17 billion in Bitcoin shorts could be liquidated if Bitcoin reaches $68K, which also poses a threat to its ability to reach new highs.
On the other hand, other data supports Bitcoin’s continued recovery, potentially reaching a new all-time high by Q4 2024 or Q1 2025.
Buying Opportunities and Whale Accumulation
Bitcoin recently dropped below the 200-day Simple Moving Average but has double bottomed, a key indicator for the continuation of long-term trends.
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, it could signal the beginning of a bear market.
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.
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.
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.
