Key Insights:
Bitcoin has established a local peak at $69k following profit-taking, currently cooling to $66.3k.
More than 96% of BTC holders are in profit, with the majority being long-term investors.
Bitcoin faces $1.6 billion worth of short positions at the $69k level.
A breakout above $69k could trigger a short squeeze, pushing Bitcoin past $73.7k.
Bitcoin Hits Resistance at $69k
After surging from $62,000 to $69,400 between October 14 and 21, 2024, Bitcoin appears to have hit a local high. This 12% gain was driven by heightened market activity, significant inflows into Bitcoin ETFs, whale and institutional buying, and policy developments from the US Federal Reserve.
Bitcoin Tries To Sustain Above $70k
Bitcoin Aims to Hold Above $70k
Historically, Bitcoin has struggled to maintain levels above $70k, but this time, various factors like ETFs, institutional involvement, whale activity, and retail interest could provide the needed momentum.
87% of Bitcoin Holders Are in Profit
According to on-chain data from Glassnode and IntoTheBlock, over 87% of Bitcoin holders are currently in profit, predominantly long-term investors. The market is largely composed of long-term and medium-term holders, with short-term holders making up only 4%. This strong long-term holding base reduces the risk of panic selling.
Holder Composition in Bitcoin
$1.72 Billion in Shorts at $69k
As Bitcoin retraced from the $69k level, short sellers quickly built positions. Presently, over $1.72 billion worth of short positions are clustered around the $69k strike price. If Bitcoin manages to break this level, a short squeeze could propel its price past $73.7k.
A short squeeze happens when bearish traders, facing significant losses, are forced to close their positions, resulting in a rapid price increase driven by the overwhelming presence of bullish positions.
New All-Time High Possible Only After $69K Breach
For Bitcoin to hit a new all-time high, it needs to decisively break the $69k mark, potentially in the coming week. High volatility, often observed ahead of events like the upcoming US elections on November 5, 2024, could spark the necessary conditions for this breakthrough.
Should volatility increase, Bitcoin could surpass $69k, setting the stage for a short squeeze and pushing the price toward $73.7k.
Can Bitcoin Stay Above $73.7k?
Several factors suggest Bitcoin could hold above $73.7k once it crosses this threshold:
Rising Retail Adoption: The number of Bitcoin addresses has surpassed 53.5 million for the first time, reflecting broad adoption and high activity.
Sustained ETF Inflows: Bitcoin ETFs have consistently seen inflows, with BlackRock receiving over $1.5 billion last week and even GBTC attracting $63 million.
High Market Liquidity: The US Fed’s 0.5% rate cut has boosted liquidity, which could be funneled into crypto through stablecoin issuances by Tether, Circle, and others.
Aggressive Whale Buying: Whales have been purchasing Bitcoin at unprecedented levels, fueling confidence in sustained price growth.
These factors combined create a strong foundation for Bitcoin to hold above $73.7k once it breaches this critical level.
tags: #Bitcoin #Crypto #Stablecoin
