Bitcoin is currently priced at $59,231.05 an it shows promising signs of a potential bull run. With a 1.35% increase in the last 24 hours, its market cap has surged to $1.17 trillion. However in the last 24 hours trading volume has decreased by 26.47% hitting $25.5 billion.
Bitcoin's supply is showing signs of tightening. As reported from a recent tweet, Since July, ETFs and accumulation addresses have purchased 450,000 BTC. This surge in accumulation has driven the Bitcoin supply on exchanges to its lowest level in six years. Long-term holders are also making a significant impact with accumulation reaching its highest level in 15 months.
Additionally, 45% of Bitcoin's supply has remained unmoved for the past six months, further indicating a potential supply crunch. MicroStrategy's recent $2 billion purchase, along with Marathon's $300 million acquisition and continuous accumulation by financial institutions like BlackRock are all contributing factors that could set the stage for a substantial price increase.
On the demand side, several key events are expected to occur by Q4 likely boosting Bitcoin's demand. These include the anticipated Fed rate cut, the start of global quantitative easing (QE), Russia's international trade with crypto and the implementation of the FASB rule. This rule could allow over $3 trillion of corporate cash to be invested in Bitcoin. These events could inject massive liquidity into the market, driving Bitcoin's price higher especially with the ongoing supply crunch.
Bitcoin's recent price action has been bullish. After dropping to $49,000 on August 5th due to recession fears and NFP data. The latest analysis shows BTC dropped to fill a 4-hour fair value gap at 56K as analysed in our previous report. The price has since rebounded reaching the current price above $59K.
Bitcoin is now trading within a bullish flag pattern that has been forming since early March. The key resistance level to watch is around $68K. If Bitcoin can break and close above this level, an upward momentum could be expected potentially pushing the price to $100K by the end of the year.
The MACD indicator on the 4-hour chart also supports this bullish outlook. The MACD line has crossed above the signal line, with the histogram in positive territory, indicating a bullish crossover. This suggests that momentum is favoring the bulls with more upside potential likely.
Market sentiment also remains positive, with 80% of holders currently in profit at the current price level. According to Coinglass, more short positions have been liquidated than long positions today, with $740 K in short liquidations compared to $280K in long liquidations. This further suggests that traders are leaning towards a bullish outlook with more people taking long positions, expecting the price to continue its upward trajectory.
Bitcoin is showing strong signs of a potential bull run, supported by a supply crunch, increased demand and bullish technical indicators. The next major resistance to watch is the $68K level. Breaking above this could pave the way for a price increase potentially reaching $100K by year-end.