The withdrawal of 210,000 Bitcoins from exchanges was interpreted as a sign that the Bitcoin price will increase by reducing the selling pressure in the cryptocurrency market. The movement, together with technical indicators, shows that Bitcoin can reach new peaks in the last quarter of 2024. This situation has become a positive issue for Bitcoin investors. Let's see what the metrics say about BTC.
Big Move in Bitcoin! Are New Highs Coming?
After testing the $64,000 level, Bitcoin experienced a pullback to $63,700. However, after this short-term correction, the potential for a resurgence seems high. In particular, the withdrawal of 210,000 Bitcoin from exchanges reduces selling pressure and supports the upward movement of prices.
Hodlers are withdrawing their Bitcoins from exchanges for long-term storage, which reduces the supply in the market. This move could pave the way for Bitcoin's price to rise even further, especially in the last quarter of 2024. Historically, the falling wedge formation seen in Bitcoin prices has been a sign of a strong rise.
What Formation is Bitcoin in?
BTC is currently in an expanding bearish wedge formation. A break above $70,000 could send Bitcoin to $100,000. This scenario could become more likely, especially if the US Federal Reserve cuts interest rates in September.
The MVRV (Market Realized Value) bands indicate that if Bitcoin breaks the resistance at $67,300, it could take the price to $80,500. With 210,000 Bitcoins held long-term, breaking this resistance level is becoming increasingly possible.
No CME Gap Advantage
In addition, Bitcoin’s performance around the CME closing price over the weekend contributes to the stability of the market. The absence of a gap in the CME has continued the upward momentum in the market, and the continuation of this trend may trigger new purchases and lead to further price increases.
The increase in Bitcoin’s open interest is also noteworthy. Despite the recent price drop, an increase in open interest has historically been a sign that prices are recovering quickly and making new highs. The increase in open interest could allow Bitcoin to gain upward momentum and perform strongly throughout 2024.
Bitcoin is well-positioned to perform strongly throughout the rest of 2024. Several factors support the idea that Bitcoin’s price could rise even higher in the coming months.
