• Sat. Oct 5th, 2024

Bitcoin Surge: Could BTC Hit $75K Soon Amid Whale Activity and Support?

Xavier Jackson

ByXavier Jackson

Sep 15, 2024
Bitcoin Surge: Could BTC Hit $75K Soon Amid Whale Activity and Support?

Key Insights:

  • Bitcoin’s price could rise 27%, reaching $75,000 after rebounding from key support levels.
  • Whale activity and reduced Bitcoin supply on exchanges point to further upward momentum.
  • Open interest in Bitcoin hits $31.72 billion, signaling growing investor confidence and demand.

Bitcoin (BTC) is showing strength across various timeframes, with analysts predicting further gains following its recent recovery. After crossing the $60,000 mark, many are wondering if the world’s largest cryptocurrency will reach new highs in the near future. 

According to a recent analysis, key support levels and increased buying activity from large investors suggest that Bitcoin could experience significant price increases.

As of press time, Bitcoin is trading at $60,207.84, with a 24-hour trading volume of $10.63 billion. This represents a slight 0.07% increase in the last 24 hours and a 10.51% price hike over the past week. 

This recovery has led to a positive shift in traders’ and investors’ portfolios, and some analysts believe that more growth could be on the horizon.

Analyst Predicts Potential Price Surge

Crypto analyst Carl Runefelt has suggested that Bitcoin’s price could rise by up to 27% soon, potentially hitting the $75,000 mark. According to Runefelt’s analysis, Bitcoin’s recent gains followed a rebound from a key support level between $52,250 and $50,647. This area is the bottom of a descending channel where Bitcoin has been trading recently.

Source: X

A descending channel typically signals a potential upward price movement due to increased liquidity. Runefelt’s chart indicates that if Bitcoin continues its current trend, the price could reach the upper edge of the channel, which sits around $66,000.

Runefelt also observed a descending resistance line on Bitcoin’s chart. Adding that Bitcoin’s price could go “parabolic” if these levels are breached, he noted

“Once #BTC breaks this Descending resistance, it could go parabolic”

Source: X

His analysis suggests that a breakout could push Bitcoin to liquidity zones between $72,000 and $74,000, or potentially even higher depending on market momentum.

Whale Activity Boosts Bitcoin’s Price Outlook

Increased buying activity from large investors, often referred to as “whales,” has also contributed to Bitcoin’s recent price movement. Whale activity typically involves significant fund inflows into the market, which can positively affect Bitcoin’s price.

MicroStrategy, an institutional investor, recently acquired 18,300 BTC between August 6 and September 12. This purchase increased the company’s total Bitcoin holdings to 244,800 BTC, yielding unrealized gains of $4.71 billion. 

Other whales have also been active in the market. One such investor purchased 1,062 BTC, bringing their total holdings to 10,043 BTC, worth approximately $603.84 million.

This surge in whale activity indicates renewed confidence in Bitcoin, which often leads to an increase in demand. As large investors accumulate more Bitcoin, retail investors are beginning to follow suit, mirroring their buying patterns. 

According to Coinglass, open interest in Bitcoin has increased by 5.22%, reaching $31.72 billion, the highest level since early September.

Source: Coinglass

Market Liquidity and Exchange Activity

Rising market liquidity has also supported Bitcoin’s recent price movements. For instance, the USDC Treasury recently minted 50 million USDC, which was transferred to Coinbase, indicating growing demand as investors seek to acquire more Bitcoin.

During this period, a notable transaction of $30.95 million was transferred from Coinbase Institution to Coinbase, another sign of increasing liquidity to purchase cryptocurrencies. Such liquidity inflows can create upward pressure on Bitcoin’s price as the demand for the asset rises.

Additionally, data from IntoTheBlock shows that there has been a notable decline in Bitcoin supply on exchanges. Exchange netflows for the past seven days revealed a reduction of 9,670 BTC and 4,550 BTC, which could lead to a supply squeeze. A reduction in the available supply of Bitcoin on exchanges often leads to price increases, as there is less BTC available for purchase.

Source: IntoTheBlock

If this trend continues, Bitcoin could see further upward movement. The reduction in short positions, combined with the ongoing accumulation by whales and retail investors, points to a bullish outlook for the cryptocurrency. Should these factors persist, Bitcoin may be poised for new highs in the near future.

Xavier Jackson

Xavier Jackson

Xavier Jackson is a talented and versatile news writer with a knack for delivering compelling stories. With a dedication to accurate reporting and a captivating writing style, his articles provide readers with insightful and thought-provoking perspectives on current events.

Leave a Reply

Your email address will not be published. Required fields are marked *