- Bitcoin Long liquidations lead to the formation of a local bottom.
- A short-term price increase for Bitcoin seems imminent.
Bitcoin [BTC] has shown resilience after a sharp decline due to geopolitical tensions between Israel and Iran. Bitcoin was trading around $62K at the time of writing and showing signs of regaining the $63K level.
The recent liquidation of long positions may have reached a local bottom, indicating that BTC could make a further upward move, with this bottom serving as the low of the month.
During significant declines, long-term contracts often fall sharply due to liquidations, reducing selling pressure.
Key liquidity levels held steady between $68,900 and $69,300 above press time, and $56,800 to $57,400 below.
A new liquidity cluster also emerged in the $66,500 to $66,800 zone, suggesting that price could target this area soon.
Source: CryptoQuant
While BTC’s price action has fluctuated between $55,000 and $75,000 for over 200 days, Bitcoin remained in a solid position.
It traded above the 100-week moving average (100MA) on the weekly chart, maintaining its strength at the macro level.
Notably, BTC is now 170 days past Bitcoin’s last halving, and historical patterns show that new all-time highs (ATHs) tend to form around 1,080 days after the previous cycle’s peak.
This suggests that, if history turns out to be right, Bitcoin is likely to rise higher than its current level.
Source: Sanki/X
Coinbase Premium Indicator
Adding to this bullish outlook is the Coinbase Premium tool on CryptoQuant, which highlights a near-term BTC increase.
When a golden cross is formed, as evidenced by previous price movements, Bitcoin often experiences a short-term boost. This indicator adds further evidence that BTC could rise from its current local low.
Source: CryptoQuant
Demand for US Bitcoin spot ETFs
Demand for Bitcoin from US spot ETFs has also increased. In early September, spot ETFs were net sellers, but by the end of the month they had purchased 7K BTC, the highest level since July 2021.
In the first quarter of 2024, spot ETFs bought nearly 9,000 BTC daily, pushing prices to new highs. If this buying trend continues, Bitcoin’s price could rise even further in the last quarter of 2024.
Source: CryptoQuant
Whales remain stable
Furthermore, large Bitcoin holders, or “whales,” have shown historically low profit-taking, indicating confidence in future price growth.
Whales have spread their BTC across several addresses, with only 1,975 addresses now holding between 1,000 and 10,000 BTC.
Despite some recent selling, whales have made minimal gains compared to previous cycles, further supporting the idea that the price of BTC will rise from here on out as they try to maximize their profits.
Source: CryptoQuant
Read Bitcoin’s [BTC] Price forecast 2024–2025
A combination of liquidations, rising demand from ETFs, and strong whale activity indicates that Bitcoin is poised for further gains from its current local bottom.
All these factors point to a likely uptrend for BTC in the short term.