Key Points
- Bitcoin (BTC) price shows signs of a potential bullish breakout, currently trading around $63.5K.
- Whale investors’ demand continues to rise, with Bitcoin supply on centralized exchanges decreasing.
Bitcoin (BTC) has shown signs of potential bullish breakout after starting the month with some uncertainty.
Latest market data indicates that Bitcoin’s price has jumped nearly 3% in the last 24 hours, trading at about $63.5K during the early European session on Monday.
Technical Indicators Point to Bullish Trend
Bitcoin successfully rebounded from the 50 Moving Average (MA) and the support level of around $60.5K in the daily time frame. This has resulted in the formation of the first higher high and higher low, indicating a potential bullish trend.
However, for Bitcoin to reach its all-time high (ATH), it needs to consistently close above the resistance level of around $66K. Veteran trader Peter Brandt argues that unless Bitcoin consistently closes above the July high of around $70K, the macro falling trend will continue.
In such a scenario, Bitcoin’s price may fall below $60K again, potentially down to $40K, before rebounding towards ATH.
Whale Investors Continue to Drive Demand
Market data shows that the supply of Bitcoin on centralized exchanges has dropped by nearly 3K units in the last 24 hours and by over 48.8K in the past week. This decrease is fueled by the demand from US spot BTC ETFs, which currently hold Bitcoins worth more than $57 billion.
Despite the significant cash outflows from Grayscale’s GBTC, major Bitcoin investors, including BlackRock, MARA Holdings, MicroStrategy, Fidelity Investments, and El Salvador, continue to hold and add more Bitcoin to hedge against global inflation.
Japanese company Metaplanet recently announced the acquisition of an additional 108 BTCs, worth over 6.7 million. This brings the company’s total holdings to over 639 BTCs, worth over $40 million.
Bitcoin’s price, in the long run, is expected to follow Gold and Silver prices in a bullish breakout. With the 2024 US general elections approaching, Bitcoin’s price is likely to benefit from increased demand as investors seek alternatives to the dollar amidst ongoing rate cuts.
