Bitcoin (BTC) has been on the rise since the Federal Reserve cut interest rates in the US last Wednesday (17).
With increasing demand and improving market sentiment, the cryptocurrency could reach $69,000. This analysis explores the key factors that would drive this potential rally.
Bitcoin Miners May Be the Key
The Puell Multiple suggests that Bitcoin may be poised for a prolonged rally. For the first time since the end of the 2022 crypto winter, the value of this metric, which measures miner profitability, has reached the “green” zone of 0.5.
When BTC’s Puell Multiple is above 4, the market is considered to be in the “red zone,” where miners are making substantial profits. This often signals a market top and is characterized by increased selling pressure, which causes the price to drop.
A lot of Puell do Bitcoin. Source: CryptoQuant
On the other hand, when the coin’s Puell Multiple enters the “green zone,” mining profitability is significantly lower than usual. This phase often results in an upward price movement because these unprofitable conditions force miners to reduce or close operations. The resulting decrease in BTC supply drives its value upward.
In a recent post on the CryptoQuant blog, contributor Darkfost confirmed this.
“Historically, when the green zone was reached, it was followed by an upward price movement. Conversely, reaching the red zone usually preceded a downward market movement,” the analyst noted.
Bitcoin’s positive funding rate since September 15 is another bullish indicator that its price may continue to rise. Currently, the coin’s funding rate, which represents a periodic fee paid to ensure that its contract price remains close to its spot price, is 0.005%.
Bitcoin funding rate. Source: Santiment
A positive funding rate suggests that most traders expect the price to rise, leading to more demand for long positions than short ones.
Read more: Top 5 Most Secure Bitcoin Wallets of 2024
Price forecast
If history repeats itself and the Puell Multiple readings hold true, Bitcoin is likely to witness an uptrend, potentially pushing towards the resistance at $67,078. A bounce above this level could pave the way for the price to reach $69,000, something not seen since July.
Bitcoin Chart on TradingView
However, if the expected accumulation wave fails to materialize and selling pressure intensifies, Bitcoin's price could drop to $54,672.
The article Bitcoin (BTC) heading to $69,000? Analysis shows this is possible appeared first on BeInCrypto Brazil.
