Bitcoin (BTC) Price Needs To Break $70,000 For The Uptrend To Continue

Bitcoin traders are upbeat, expecting prices to shake off recent weakness and soar above the local resistances to as high as $73,800

Bitcoin traders are optimistic that prices will recover from recent weakness and rally past local resistances to reach highs of $73,800. However, buyers will need conviction to push the coin above these liquidation zones.

The leg up must also be sustained by a fresh influx of new capital, particularly from investors who fear missing out on the rally.

Presently, Bitcoin is stable, trading within last week’s bear range. At the same time, the coin is also trading within the September 1 bear candlestick, which is notably wide-ranging. Despite prices finding support from the $56,500 and $57,000 support zone, some traders are not convinced, especially at spot rates.

Bitcoin Needs To Clear $70,000 For Uptrend To Continue Q1 2024

There are several reasons to be cautious, and according to IntoTheBlock data, bulls will need support to continue the uptrend into Q1 2024.

Their data shows that around seven million addresses purchased BTC at prices ranging from $61,700 to $70,500.

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According to the analytics platform, these addresses are underwater at spot rates. Hence, the closer prices get to their breakeven price, the higher the chance of them selling.

Their sustained selling pressure and motivation to get into the green, IntoTheBlock data analysts say, will prevent BTC from ripping higher to reach new all-time highs. In light of this, and for Bitcoin to soar, bulls will need to sustain the rally past $60,000

Furthermore, they will need to decisively clear $70,000, preferably with expanding volume. If anything, the level of engagement should surpass the trading volume recorded on August 5. Back then, prices went on to crash to lows of $49,000 in early August.

Over 30% Of All Supply In HODLer Hands, Paper BTC Declining

While there is a possibility that the nearly seven million addresses will dump BTC, a large portion of the BTC supply is in the hands of long-term holders (LTHs). LTHs are addresses that have held BTC for at least 155 days. According to IntoTheBlock data, over 30% of the total supply has not been moved in over five years.

Related Reading: Why Is Bitcoin Price Down Today? Key Reasons Explained

Meanwhile, another bullish factor that could support prices in the coming days is how the market has absorbed supply from German authorities, the United States Department of Justice (DoJ), and Mt. Gox.

According to one on-chain analyst, the absorption has been impressive. This development, coupled with declining “paper” BTC from derivative platforms like Binance, could support prices.