- A significant amount of Bitcoin had disappeared from the exchanges.
- Bitcoin showed strength as the market expected a bullish end to the year.
Bitcoin [BTC] continues to show resilience as the crypto market prepares for a potentially bullish final quarter of the year.
At the time of writing, Bitcoin was trading at $64K, after peaking at $66K three days ago. The recent slight dip signals a brief correction, but on-chain data shows BTC being moved from exchanges to cold wallets.
This behavior indicates that investors are accumulating BTC in anticipation of a rally, indicating greater confidence in Bitcoin’s long-term price stability.
Source: CryptoQuant
Bitcoin reverses the bull support band weekly
Bitcoin’s move away from the exchanges supports the bullish outlook, with BTC now trading above the bull market support band.
BTC has been hovering around this key level but has managed to close above the band for the second week in a row.
If Bitcoin maintains this momentum, it could leave the support band behind and trigger a more substantial upward move that could potentially break the ATHs.
Source: TradingView
Historically, Bitcoin’s strongest fourth quarters followed a bullish September. In 2024, the price has already risen more than 8% in September.
This sets the stage for a potential surge to new highs in November, as previously predicted by AMBCrypto.
The performance strengthens the case for a bullish outlook, with BTC likely to rise even higher in the coming weeks.
Short-term holders are making profits again
Bitcoin’s recent price action has also brought profits back to short-term holders. These investors, who have moved their BTC in the last 155 days, are now seeing gains as the price trades above the $63,000 level.
This price level is expected to act as a support level, potentially allowing BTC to move higher.
The newfound profitability for short-term holders aligns with the broader trend of Bitcoin exiting the exchanges, further strengthening the bullish outlook.
Source: CryptoQuant
Bitcoin locked in DeFi
Another factor supporting Bitcoin’s bullish momentum is the growing demand for BTC in decentralized finance (DeFi). Currently, 1% of Bitcoin’s total supply is captured in DeFi protocols.
This trend is driven by the increasing demand for Bitcoin-based yields and the launch of Coinbase’s new Bitcoin-pegged token, cbBTC.
As more Bitcoin is tied up in DeFi, scarcity in spot markets increases, which could drive up the price.
The reduced availability of BTC on exchanges, combined with its growing use in DeFi, creates an environment where Bitcoin could see significant price increases in the coming months.
Source: IntoTheBlock
These developments add further confidence to the bullish outlook as markets enter the final quarter of the year.
Read Bitcoin’s [BTC] Price forecast 2024–2025
Bitcoin’s current strength, increased accumulation, and rising demand in DeFi suggest a positive trajectory for its price.
If BTC can sustain these trends, it could reach new highs before the year ends. Investors are watching closely and expect Bitcoin to perform even better as the market enters a historically strong quarter.
