#Bitcoin (BTC) managed to break the $65,000 barrier, sparking a wave of optimism among investors. Some began to believe that the price could quickly rise and reach $70,000, a value last seen about three months ago.
However, long-term holders (LTH) could pose a certain risk to further growth. If they decide to sell and realize their profits, it might slow down the price's upward movement.
What Is Needed for Bitcoin to Reach $70,000?
Historically, bitcoin has performed well in the fourth quarter, but the current rally depends on more factors than just investor sentiment. Matt Mena, a crypto research strategist from 21.co, explained in an interview with BeInCrypto that the rise of BTC toward $70,000 would depend, among other things, on a potential interest rate cut by the Federal Reserve.
According to Mena, lower interest rates would increase liquidity in the market, which has historically supported bitcoin's growth as investors seek higher returns in riskier assets like cryptocurrencies. This liquidity often leads to rising prices in riskier assets, including #BTC .
Politics and Regulation Play a Key Role
Another important factor is the upcoming U.S. elections. Both main presidential candidates support cryptocurrencies and innovations in this sector, which could create a more favorable regulatory environment. This positive political development could boost investor confidence and attract additional capital to the market.
Long-term Holders and Their Impact on the Market
When bitcoin reached the $65,000 mark, it hit a two-month high, prompting some long-term holders to consider selling. Historically, these holders tend to sell during price rallies, which could create downward pressure.
Bitcoin Liveliness. Source: Glassnode
The liveliness indicator, which tracks long-term holder activity, shows an upward trend, suggesting that some have already begun to sell their positions. This selling pressure could lead to a price correction and potentially disrupt market stability.
Future BTC Price Predictions
Currently, bitcoin is trading around $65,371, and it seems that the $65,000 level is becoming a strong support level. The next key target will be breaking the $70,000 barrier and turning it into a new level of support.
While some optimists expect bitcoin to reach as high as $81,556, a more realistic target remains around $70,000. Further growth will require not only strong support from investors but also favorable macroeconomic conditions.
Bitcoin Price Analysis. Source: TradingView
However, if long-term holders increase their selling pressure, bitcoin might struggle to break through the $68,500 level. In such a scenario, the price could drop back below $65,000, weakening the bullish outlook and potentially leading to further decline.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“