- Bitcoin price action turns bullish.
- Bitcoin is attracting institutions due to its annual gains.
Bitcoin [BTC] has closed above the Bull Market Support band, a crucial level on the higher time frame, after remaining below it for three consecutive weeks.
This recovery indicates a potential increase in the price of BTC. Despite brief deviations, the price action now indicates a bullish trend, with the current level around $67,000 acting as a key liquidity zone.
Bitcoin breaking through the liquidity zone on strong volume and staying above it gives traders and investors the confidence to go long, while others could increase their positions.
Source: TradingView
Bitcoin’s appeal is unstoppable
Institutional interest in Bitcoin continues to grow, reinforcing its upward momentum. Semler Scientific recently purchased 83 additional Bitcoin, worth $5 million, bringing their total holdings to 1,012 BTC.
This acquisition positions them as the fourth largest Bitcoin holding company in the US, excluding miners.
Historically, BTC has shown resilience, with only three years of negative percentage change since inception, while the remaining twelve years have been positive.
Source: CryptoQuant
Semler’s commitment to buy more BTC, backed by a $150 million fundraising, reflects Bitcoin’s increasing institutional adoption, which is driving the market higher.
Despite challenges, Bitcoin consistently demonstrates its potential to reach new highs. With this year already showing positive growth, expectations are for a strong outcome, reinforcing bullish sentiment.
Difference between BTC and S&P 500
Bitcoin’s price movements often mirror that of the US stock market, especially that of the S&P 500. When the S&P 500 rises, BTC tends to follow, and vice versa.
In August, when the market fell 6% due to fears of a recession, the Bitcoin price also saw a sharp decline of 30%.
But as the market has since recovered and neared an all-time high, BTC remains 20% below its July level and 30% below its March 2024 level.
Source: Bloomberg
This difference presents an attractive opportunity to buy BTC, expecting it to catch up with the stock market’s recovery.
Read Bitcoin’s [BTC] Price forecast 2024-25
The supply of stablecoins is increasing
Finally, the increasing supply of stablecoins such as USDT and USDC also supports a higher BTC price. Over the past three months, their market capitalization has grown by 3%, indicating rising demand.
With BTC supply growth slowing after the halving, this increasing demand indicates that the price is likely to continue climbing higher.
Source: CryptoQuant
