Key Points
- Bitcoin (BTC) price has regained a crucial support level, driven by increased demand from whale investors.
- The price action over the coming weeks will be determined by whether Bitcoin can maintain a price above $64K.
Bitcoin (BTC) price managed to close above the 200-day Moving Average (MA) on Tuesday, marking the first time in September. This happened after a rally that pushed the price towards a high of about $64,755, although it retraced to below $63K on Wednesday during the mid-London session.
This price movement is significant as Bitcoin has been operating around a crucial support/resistance level of approximately $64K. This level will play a critical role in determining the price action in the weeks ahead.
Price Predictions
If the Bitcoin price can consistently stay above $64K in the coming weeks, it could set the stage for a bull run in the fourth quarter. This could potentially lead to a new all-time high. However, if Bitcoin struggles to flip the resistance level around $64K, it could result in another lower low in the weekly timeframe in the near term.
Bitcoin’s price has been caught in a bearish correction over the past six months, following an all-time high of around $73.7k. However, based on historical data showing that most fourth quarters are bullish, sentiment remains positive for Bitcoin in the near term.
The bullish sentiment is further supported by the ongoing rally in gold prices and the rising trend of some major stock indexes.
Whale Investors and Market Picture
Recent on-chain data reveals that long-term investors have increased their appetite for Bitcoin. This is evidenced by three whale investors withdrawing Bitcoins worth nearly $300 million from the Binance exchange in the past 24 hours. The supply of Bitcoins on centralized exchanges has continued to decline, with more than 97k BTCs being withdrawn from different exchanges in the past 30 days.
The rising demand for Bitcoin among whale investors is also evident through the cash flow of spot BTC ETFs. In the past three weeks, the US spot Bitcoin ETFs have registered a net cash inflow of nearly $1 billion.
The global economic shift continues to escalate amid rising geopolitical tensions in the Middle East and between Russia and NATO. Gold price has risen to a new all-time high (ATH) of about $2,655 per ounce, signaling a need for a hedge against inflation and global uncertainties.
Major global economies, including the United States, European Union, Canada, and China, have initiated respective interest rate cuts to stimulate growth in the near term.
The demand for Bitcoin among nation-states led by El Salvador and Bhutan will continue to influence more institutional investors, such as MicroStrategy Inc (NASDAQ: MSTR), in a long-term accumulation plan.
