Key Points
- Bitcoin’s price hits a major resistance level around $64K due to increased demand from whale investors.
- Bitcoin whales, particularly miners, have significantly increased their trading activities.
Bitcoin’s price surged by 3% in the past 24 hours, reaching a high of approximately $64,082. However, the cryptocurrency encountered significant resistance around $64K, aligning with the 200-day moving average. Consequently, Bitcoin’s price fell by about 1% and was trading at approximately $63,434 during the mid-London session on Friday.
This price volatility led to the liquidation of over $50 million from Bitcoin’s leveraged market. The largest liquidation occurred on OKX, involving a $5 million trade. From a technical perspective, Bitcoin’s price could further decline in the coming days before rebounding towards its all-time high.
Market Analysis
Crypto analyst Ali Martinez suggested that the TD Sequential indicator has signaled a sell signal for Bitcoin, potentially leading to further midterm correction over the weekend. However, Martinez expects Bitcoin’s price to rally towards an all-time high if it consistently closes above the liquidity level of around $64K.
Increased Activity from Bitcoin Whales
On-chain data analysis reveals that Bitcoin whales, led by miners, have significantly increased their trading activities. In the past 30 days, the supply of Bitcoin on different cryptocurrency exchanges has decreased by over 96.6K. On both Coinbase and Binance, the supply of Bitcoin declined by 15.1K and 58.3K respectively in the past four weeks.
The significant decline on Coinbase was heavily influenced by the rising demand from spot Bitcoin ETF issuers. Over the past two weeks, US spot Bitcoin ETFs registered a net cash inflow of more than $700 million, led by Fidelity’s FBTC. On Thursday, the US spot Bitcoin ETFs registered a net cash inflow of approximately $158 million.
On-chain data also shows that several Bitcoin miners, who have been dormant for over 15 years, activated their wallets with around 250 BTCs earlier today.
Market Picture
Following the first interest rate cut by the US Federal Reserve since the COVID-19 pandemic, the Bank of Japan left its rates unchanged on Friday, as per market expectations at 0.25 percent. This ongoing global economic shift is expected to significantly boost liquidity for the crypto market in the near future, amid the ongoing crypto bull market.
The crypto industry is expected to follow the precious metal market, led by gold, in a bullish outlook. Current market data shows that the price of gold has rallied to an all-time high of over $2,609 per ounce. Given the positive correlation between gold and Bitcoin prices, the crypto market is expected to follow suit, especially during the fourth quarter bullish expectations.
