Bitcoin [BTC] continues to show resilience as the cryptocurrency market prepares for a potentially bullish final quarter of the year.
At the time of writing, Bitcoin is trading at $64K, after peaking at $66K three days ago. The recent slight drop suggests a short-term correction, but on-chain data shows BTC is being moved off exchanges and into cold wallets.
This behavior suggests that investors are accumulating BTC in anticipation of a price rally, indicating increased confidence in Bitcoin's long-term price stability.
Bitcoin Breaks Above Weekly Bull Market Support Band
Bitcoinâs movement off exchanges reinforces the bullish outlook, with BTC currently trading above the bull market support band.
BTC has been fluctuating around this important level but has closed above the support band for two consecutive weeks.
If Bitcoin maintains this momentum, it could push away from the support band and trigger a strong breakout, possibly breaking the ATH levels.
History shows that Bitcoin's strongest fourth quarters are often followed by a strong September. In 2024, BTC gained more than 8% in September.
This opens up the prospect of a new rally in November, as TinTucBitcoin had predicted.
This performance reinforces the case for a positive outlook, with BTC expected to see further gains in the coming weeks.
Short term holders are back in profit
Bitcoinâs recent price action has also been profitable for short-term investors. Those who have moved BTC in the past 155 days are now seeing profits as the price trades above $63K.
This price level is expected to act as support, potentially pushing BTC higher.
New Profitability for Short-Term Investors Matches BTC Withdrawal from Exchanges, Further Strengthening Bullish Outlook
Bitcoin locked in DeFi
Another factor supporting Bitcoin's rally is the increased demand for BTC in DeFi (DeFi). Currently, 1% of the total Bitcoin supply is locked in DeFi protocols.
This trend is fueled by growing demand for Bitcoin-based products and the launch of Coinbase's Bitcoin-pegged cbBTC Token.
As more Bitcoin is locked in DeFi, its scarcity on the spot market increases, which could drive the price higher.
The decline in the number of BTC on exchanges, combined with the increased demand in DeFi, creates an environment where Bitcoin could see significant price increases in the coming months.
These developments add to confidence in the growth outlook as the market heads into the final quarter of the year.
Bitcoin's current strength, increased accumulation, and growing demand in DeFi point to a positive price path.
If BTC can maintain these trends, it could break new highs before the year ends. Investors are watching closely, expecting Bitcoin to rise even higher as the market enters a historically strong quarter.
