Bitcoin: Falling US bank reserves could push prices higher
An expected temporary drop in U.S. bank reserves could boost Bitcoin (BTC) prices. The outlook for BTC is positive, driven by increased liquidity and market dominance.
Analyst Thomas predicts that U.S. bank reserves will fall to their lowest level in more than four years, which may prompt the Federal Reserve to stop quantitative tightening (QT). After QT is stopped, liquidity will increase significantly, which may benefit risk assets including Bitcoin and stimulate market optimism.
Although Bitcoin is showing mixed signals in the short term, with sell signals and overbought conditions pointing to a possible pullback, there is still support if it can hold above $60,000. BTC prices have fluctuated between $53,000 and $62,000 over the past six weeks, with traders eyeing a possible breakout.
Short-term holders have currently lost only 4.46%, indicating that the market is stable and there is no panic selling. The profitability of long-term holders has declined, but 58.27% are still in profit. This could hint at an underlying bearish trend, but active buying by both new and established investors shows the market still has room to rise.
Bitcoin market dominance has risen to 57.86%, a new high since April 2021, indicating that BTC may lead the market towards a sharp rise. Investors are closely watching this crucial moment for signs of further Bitcoin gains.
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