Key Points
- Bitcoin’s recent recovery and potential for new all-time highs are supported by significant buying activity and other key indicators.
- Increased whale activity and a surge in market liquidity through stablecoins are positive signs for Bitcoin’s price.
Bitcoin’s recent recovery on the charts has been remarkable, erasing previous losses. It’s now showing strength across all timeframes, with traders and investors seeing their portfolios turn positive following a 24-hour hike of 3.42%.
More growth could be on the horizon, especially as further analysis seemed to highlight the potential for new all-time highs.
Analysis Predicts Further Bitcoin Growth
According to analyst Carl Runefelt’s chart, Bitcoin’s recent gains followed its rebound from a major support level between $52,250.33 and $50,647.52. This level is significant as it coincides with the bottom of the descending channel in which Bitcoin has been trading.
A descending channel on a price chart typically signals potential upward movement due to greater liquidity driving the asset’s price higher. Runefelt suggests that the convergence of these levels could propel Bitcoin by 27.10%, reaching the upper edge of the descending channel around the $66,000-mark.
In another analysis, Runefelt observed that Bitcoin also formed a descending resistance line. Breaking this line could lead to significant gains. From the levels indicated on his chart, this breakout could push Bitcoin to the next major liquidity zones between $72,000 and $74,000, or potentially even higher, depending on the market momentum.
Whale Activity and Market Liquidity
A notable hike in whale activity, characterized by significant fund inflows into the market, can positively affect Bitcoin’s price on the charts. A standout transaction was MicroStrategy’s acquisition of 18,300 BTC between 6 August and 12 September.
Other whales have also been active. Recently, one such investor acquired 1,062 BTC, increasing their total holdings to 10,043 BTC worth $603.84 million. These acquisitions are a sign of renewed confidence in the asset, which tends to increase the demand for Bitcoin.
There has also been a surge in market liquidity through stablecoins. For instance, USDC’s Treasury recently minted 50 million USDC and transferred it to Coinbase. During this period, there was also a significant transfer of $30,950,165 from Coinbase Institution to Coinbase, indicating rising demand for liquidity to purchase tokens.
As whale activities persist, retail investors have begun to mirror these buying patterns. Open Interest in Bitcoin had climbed by 5.22% to $31.72 billion at press time, its highest level since early September. If this trend continues, Bitcoin climbing to higher price levels will soon appear increasingly probable.
There has also been a notable decline in Bitcoin supply across various exchanges. A fall in available Bitcoin on exchanges often leads to a supply squeeze, which typically drives prices north. If these metrics continue on their current path, it is likely that Bitcoin will see further movement upwards on the charts.
