Bitcoin (BTC) price bullish outlook on Thursday ignored extensive uncertainty among investors, which continues despite the Federal Reserve committing to the first rate cut of the year in September. Higher support will encourage more traders to consider taking long positions in BTC, targeting a significant rally over the weekend.
Bitcoin Price Reverses Trend, Aiming For $70,000
Bitcoin price confirmed the support capacity at $58,000 to absorb the selling pressure and prevent losses from extending to $55,000. Traders and whales jumped on the earliest opportunity to buy the dip, boosting BTC price trend reversal above $60,000.
The largest cryptocurrency hovered at $60,980, gearing up for the next leg to $64,000. Unfortunately, as the rollercoaster continues with unexpected movements, liquidations rise. Liquidations in August alone reached a staggering $4.8 billion mark and could keep growing, making it harder to trade Bitcoin.
$4,815,000,000 in total liquidations this month.
highest since 2021. we are so back. pic.twitter.com/8JnQJ1ZWRX
— croissant (@CroissantEth) August 28, 2024
According to Santiment data, investors with between 1,000 and 10,000 BTC in their wallets now hold 20.23% of the circulating supply, approximately 4.8 million BTC. Rising whale accumulation suggests a bullish sentiment for Bitcoin price. When large holders (whales) accumulate, it signals their belief in a potential price increase. This accumulation creates upward pressure on the price as whales buy more coins.
Bitcoin whale accumulation
A slump in BTC supply on exchanges to 1.92 million, as reported by Santiment, is a crucial bullish indicator for Bitcoin price, especially now that global markets are facing a liquidity crunch. This suggests that investors hold their BTC in self-custody rather than sell, indicating confidence in the coin’s future value. Reduced supply can lead to increased demand, historically pushing prices higher.
Bitcoin supply on exchanges
BTC Price Analysis: Bulls Stage A Comeback
Technically, Bitcoin must hold $60,000 to dispel all fears of further correction and encourage more traders to buy in anticipation of the run to $62,000. Above the support, traders will focus on the 200-day Exponential Moving Average (EMA) and the 50-day EMA confluence resistance at $61,193. The subsequent break above $64,000 will increase the chances of Bitcoin price climbing to retest $66,000 before September. The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) flaunt buy signals in short-term ranges like the four-hour chart.
BTC price chart
Conversely, the BTC price forecast calls on traders to be vigilant and prepare for dollar-cost average (DCA) in dips below $60,000. Support at $58,000 will be in handy again in stopping further BTC decline but it is too early to rule out an extended correction to $55,000.
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