Bitcoin recently experienced a significant increase in value, reaching $63,000 after the US Federal Reserve announced a long-awaited policy shift. The central bank reduced interest rates for the first time in years on September 18, which lowered borrowing costs and potentially increased investor interest in riskier assets such as Bitcoin. This has led to key on-chain metrics for Bitcoin price, paving the way for a substantial recovery in the near future.
Bitcoin’s Whale Interest Surges Amid Short Liquidation
The price of Bitcoin has seen a surge in short liquidation in the past few hours as BTC crossed $63K following the Fed’s interest rate decision. Coinglass data shows that Bitcoin experienced a total liquidation of nearly $84 million, with sellers liquidating around $71 million worth of positions.
Reports from IntoTheBlock indicate that approximately 88% of Bitcoin holders are currently in profit, with 12% breaking even. Interestingly, none of the investors are currently facing losses.
Furthermore, data from IntoTheBlock reveals that 71% of Bitcoin investors have been part of the ecosystem for over 12 months, while 25% joined within the last year, and only 5% entered in the past 30 days.
![\"\"](\"https://lh7-rt.googleusercontent.com/docsz/AD_4nXdhzN7KZzZvUHfUkm-J-KE0Y_vzAfnXEpYrR5e6b7NLPxk47CYnZ0gq6S5HM0ojE72-k_cMSV3YHLLBNtQeMlDy2kxyM0ouwCgbcsIQIE4EDTdEFda4m2XKdNMEPDM_x2sCoMnHj50oeLTfP9S66ZLqlkw?key=yVbziL25iP0SSCWqjFsgBQ\")
The recent surge in Bitcoin price has attracted significant investment from whales. IntoTheBlock notes that the number of large transactions has increased from 12.5K to 16.5K. This could strengthen Bitcoin’s support levels, potentially leading to a recovery above $70K this month.
Recently, the supply of Bitcoin held by short-term holders (STHs), those who purchased within the last 155 days, has dropped significantly. These holders, along with long-term holders (LTHs), make up the main investor types. As STHs hold onto their coins for longer periods, transitioning into LTHs after 155 days, a shift towards longer-term holding is evident. This trend, coupled with a 15% decrease in STH supply – the largest since 2012, indicates a positive outlook for Bitcoin’s stability.
What Lies Ahead For BTC Price?
Bitcoin’s recent movements have formed a bullish pattern as buyers successfully pushed the price above immediate resistance levels. Buyers broke the extended bearish consolidation around $60K as the BTC price reached a high near $63.5K. Currently, Bitcoin is trading at $63,334, surging over 5.4% in the last 24 hours.
![\"\"](\"https://lh7-rt.googleusercontent.com/docsz/AD_4nXfOpZWuP-tp6Efp6j14Dv_jmFzsr4YOTuk13s2r8qnaJ9J5SZSbJN9iNENxwASmqVbyuNWLoWI-LIdZeHI-CUeN5Y0odtV2r7jNBbIH34f3t1hb3_GDGY1TiAJ01DD03bMHywMyfS2ynhWzw-wVnpBk_GIa?key=yVbziL25iP0SSCWqjFsgBQ\")
The price has surpassed the 23.6% Fib level and is currently above the EMA20 trend line, aiming to achieve bullish targets. It is crucial for bulls to maintain the current level, as falling below could lead to a retest of the $61K support level.
With the RSI level hovering around the overbought region at 71, Bitcoin price may soon trigger a minor correction.
If the price continues to hold above the 20-day EMA, it could pave the way for a push above $65,000. This move could potentially lead to a recovery towards $68,000 and extend to $70,000.
