- Over the past three months, whales and sharks have collected over 28,000 BTC
- Bitcoin was trading above $60,000 at the time of writing, despite recent declines
Bitcoin [BTC] has successfully crossed the critical psychological resistance of $60,000, resulting in a significant number of short liquidations in the last 24 hours. Leading up to this price breakthrough, the accumulation patterns of major addresses have intensified over the past three months.
Furthermore, the supply of BTC on exchanges steadily declined, with more Bitcoin leaving the exchanges.
BTC crosses the psychological barrier
An analysis of Bitcoin’s price action on September 13 revealed a strong rebound, which pushed BTC above its psychological resistance at $60,000. At one point it was even trading at $60,543, up 4% in just 24 hours. This rise allowed Bitcoin to break above its short-term moving average (yellow line), which had previously acted as resistance.
While the cryptocurrency fell to $60,177 soon after, BTC remains bullish. The same was confirmed by the Relative Strength Index (RSI), which hovered around 55 – a sign of positive market momentum.
Source: TradingView
The move above the short-term moving average and continued bullish RSI suggested that Bitcoin may still be on an upward trajectory. The slight pullback could be temporary, with potential for further gains if buying pressure continues to increase.
Bitcoin’s continued accumulation and retreat
Recent data has also shown that Bitcoin accumulation and withdrawals have been significant in recent months – a bullish trend.
According to data from Santimentaddresses with 10 BTC or more have accumulated more than 28,000 BTC in the last three months. These large holders now control over 16 million BTC, demonstrating greater confidence in the asset.
Furthermore, Bitcoin fell below $60,000 on August 29, meaning these addresses have accumulated BTC at different price levels. This strategic accumulation during price swings suggests that these holders are preparing for potential future profits.
The supply of BTC on the exchanges also fell significantly, with 75,000 BTC withdrawn in the last three months. This leaves approximately 1.8 million BTC left on the exchanges. The reduced exchange supply is a clear bullish signal because it means holders are opting for long-term storage rather than selling. This consequently reduces the available trading supply.
Source: Santiment
If Bitcoin’s price maintains its current levels or moves higher, the combination of accumulation and supply reduction on the exchanges could further strengthen the bullish momentum. This will drive the price higher in the charts.
Short positions lead to enormous losses
The 4% rise in Bitcoin’s price during the last trading session led to a major liquidation of short positions.
According to the Mint glass According to liquidation chart analysis, short positions faced more than $48 million in liquidations at the end of trading on September 13. On the contrary, only $5 million in liquidations occurred among the long positions.
Source: Coinglass
– Read Bitcoin (BTC) price prediction 2024-25
This mirrored a similar event on August 8, when Bitcoin’s price rose from $55,000 to over $61,000, leading to a similar spike in short liquidations.
This liquidation event and broader bullish signals could fuel further upside momentum in the near term.