- Bitcoin showed resistance to the downside despite leveraged long liquidations.
- The show of force continues as Bitcoin ETFs pile up, increasing the likelihood of a $70,000 price.
Bitcoin [BTC] is about to top $70,000. Although this may seem like a bold thing to say. It took just a few weeks for the cryptocurrency to struggle to stay above $60,000.
There has been a clear shift in the market, making it easier for the bulls to move higher.
Bitcoin has shown robust demand over the past six days, a sign that the bulls are back in control after cooling off in the first ten days of October.
In other words, it looks like BTC is once again building on the same momentum as in September.
There are a few reasons why a Bitcoin price of $70,000 could occur within days or weeks.
Bitcoin showed a lot of volatility over the past 24 hours, including a wave of selling pressure, which pushed it just below the $68,000 price level.
However, this was followed by a revival in demand, which pushed prices back up and avoided further negative consequences.
Bitcoin bounces back despite shedding leverage
BTC’s extreme volatility during Tuesday’s trading session caused a leverage shake-off. This is because her Open Interest was the highest she has seen in history.
Moreover, the estimated leverage ratio also rose to a new local high.
Source: CryptoQuant
High leverage with associated open interest is usually a preparation for liquidations. Especially in times of extreme optimism and as soon as the downturn occurs, this in most cases has a negative impact on sentiment.
However, that was not the outcome that played out during Tuesday’s trading session.
Long liquidations peaked at $88.9 million on September 15. However, demand quickly dropped, pushing the price back above $67,000.
Source: CryptoQuant
The above outcome confirmed the growing optimism about Bitcoin’s ability to achieve more gains. Furthermore, the recent revival in demand has been marked by heavy accumulation by Bitcoin ETFs.
Recent reports revealed that Bitcoin ETFs have accumulated over $500 million worth of BTC in the last 24 hours.
Likewise, ETFs collected over $500 million in BTC October 14. These findings indicated that institutional demand was also leaning on the bullish side.
Read Bitcoin’s [BTC] Price forecast 2024–2025
This further explains why the cryptocurrency is now resisting the downside. It also supports expectations that the bullish is likely to break above $70,000 very soon.
Furthermore, a major catalyst (the US election) could add more fuel to rising BTC prices depending on the outcome.
