- $244M Bitcoin in new shorts will liquidate at $61K, and $9.17B Bitcoin at $68K.
- Still, the realized price, high whale ratio, and new ATH in the money supply suggest buying BTC.
The Bitcoin [BTC] The market is currently uncertain and struggling to maintain a clear upward trajectory after recovering from the August 5 downturn caused by the Japanese stock crash.
At the time of writing, BTC remained just below the $60,000 level, but challenges remained. A cluster of 4,000 new shorts is lurking, with spot sell orders just above $61,000.
So BTC could break through the $60K price level overnight, but remain stuck at $61K. This was the downside, as long liquidations with high debt loomed around the $58,000 price point.
Source: Coinglass
Furthermore, $9.17 billion worth of Bitcoin shorts could be liquidated if BTC reaches $68,000, also jeopardizing its ability to reach new highs.
However, other data supports BTC’s continued recovery, possibly reaching a new ATH by Q4 2024 or Q1 2025.
Bitcoin: Buying Opportunity Ahead?
Bitcoin recently fell below the 200-day Simple Moving Average but has reached a double bottom, a key indicator of the continuation of long-term trends.
In a bull market, this dip can provide a buying opportunity, signaling a possible recovery.
However, if Bitcoin’s price remains below the 200-day SMA for an extended period of time, it could signal the start of a bear market.
Source: Glassnode
Despite this risk, analysts believe that Bitcoin is unlikely to experience a prolonged downturn at this stage.
The current situation points to a temporary dip rather than the start of a bearish phase, with a high probability of recovery and continued growth.
Whales are accumulating as global liquidity rises
Bitcoin whales are also increasing their holdings, indicating a potential price increase. Analysts note that large investors and traders are buying during price dips, a pattern that often leads to price spikes.
This trend, coupled with the recent halving events and growing institutional interest in Bitcoin ETFs, suggests that Bitcoin prices could soon rise.
Source: CryptoQuant
Is your portfolio green? Check out the BTC profit calculator
The global money supply has also reached a new all-time high, increasing purchasing power and likely boosting the price of Bitcoin.
With more money in circulation, buying pressure increases, making Bitcoin a strong long-term investment. The continued increase in the money supply supports Bitcoin’s potential for future gains.
Source: Jamie Coutts, CMT