Over the past two weeks, Bitcoin [BTC] has shown an impressive price increase. There have been moments when the cryptocurrency has struggled to generate enough momentum to maintain a sustainable uptrend, or significantly surpass the $60,000 price mark.
Now, things have changed. Bitcoin has cleared the $60,000 resistance level and has broken higher. At the time of writing, the price of 1 BTC is $63,404, representing an increase of 18.35% over the past 14 days.
With just 10 days left in September, Bitcoin is on track to close the month in the green if it can maintain current levels. However, there is a possibility of some resistance ahead if it continues to climb towards the next major resistance area at $65,000.
Why $65,000 is Important for Bitcoin
BTC’s price action since March has formed a bullish pennant pattern. If it continues to follow this pattern, it means a bullish breakout is imminent. Now seems to be the ideal time for that breakout.
If Bitcoin makes a strong push above $65,000, it could break the high-low trend we have been observing for the past few months. Breaking this pattern would mean that the price would begin a new journey into price discovery territory.
The recent rate cut could be the next catalyst for the liquidity inflow needed to spark a stronger bullish sentiment.
Can Bitcoin Speculators Maintain Current Momentum?
Looksonchain recently noted that five BTC mining wallets active since 2009 have recently moved their BTC. This raises the possibility of a selling pressure. The findings indicate that around 250 BTC, worth over $15 million, were moved.
Bitcoin miners’ reserves continued to trend downward over the past 24 hours, reaching a five-week low of 1.81 million BTC.
The increase in Bitcoin miners’ reserves may reflect confidence in the ability to sustain the rally. However, current observations suggest otherwise. This also coincides with cautious demand on the largest exchanges.
Long-term capital has dropped sharply over the past 24 hours, indicating a lack of confidence in Bitcoin's short-term upside potential.
The situation of selling contracts remains relatively high compared to buying contracts, although there are signs of a slight decrease. This may also indicate some uncertainty regarding the possibility of price adjustment.
Bitcoin holders may view the recent rally as a sign of momentum accumulation for the next long-term rally. This may prompt them to switch from a short-term trading strategy to a long-term HODL strategy.
