In recent weeks, Bitcoin (BTC) has been showing promising bullish momentum, gradually recovering after the significant market crash on August 5 that saw the cryptocurrency dip below the $50,000 mark. Over the past 24 hours, Bitcoin’s price reached a peak of $73,562 before experiencing a minor correction of approximately 2%, settling around $72,196 during the early European trading session on Wednesday, October 30. As Bitcoin continues its upward trajectory, it is approaching a critical resistance level, potentially paving the way for a parabolic phase in the upcoming months. This development comes as Bitcoin surpasses the 30-week mark following its fourth halving event earlier this year.
Midterm Targets for Bitcoin Price
Bitcoin is on the verge of a significant breakthrough, indicating a potential bullish breakout in the near future. However, traders should remain vigilant for possible dips below the $70,000 threshold before the anticipated rally towards $84,000. Entering the Bitcoin market at $72,000 might seem belated, but historical data suggests otherwise. The Market Value to Realized Value (MVRV) Ratio crossing its 365-day Simple Moving Average (SMA) has historically been a precursor to major bull rallies. This golden cross has recently occurred, suggesting a positive sentiment among investors.
Whale Investors Remain Hungry for More BTCs
Data indicates that whale investors are increasingly interested in Bitcoin, with a marked growth in demand over recent months. This surge coincides with gold entering a price discovery phase, reaching a new all-time high of over $2,778 in the last 24 hours, prompting further speculation on Bitcoin’s bullish prospects. The Federal Reserve is anticipated to implement a rate cut next week, influenced by an improved job market and decreased inflation, alongside the 2024 U.S. presidential election dynamics.
Current market trends reveal a continued reduction in Bitcoin’s supply on centralized exchanges, with over 41,000 BTCs withdrawn in the last 30 days. This trend is largely driven by the heightened demand from US spot Bitcoin ETFs. On Tuesday, US spot BTC ETFs, spearheaded by BlackRock’s IBIT, recorded a net cash inflow exceeding $870 million, marking the highest influx since early June. This substantial investment underscores the growing confidence in Bitcoin’s future performance.
