Bitcoin is on the rise, trading strongly above the psychological round number at $60,000, looking at the formation on the daily chart. As BTC turns, there could be more room for profits and even pushing the coin above the local resistances at $66,000 and $72,000.
Bitcoin Bulls Dominance: The Next $72K?
In a post on X, one of the analysts notes that the average dominance of liquidation of long positions has fallen to zero. This means that buyers are increasingly building their positions and dominating bears, as seen from June to the first half of July.
It is worth noting that the decline in the average long liquidation advantage to zero suggests that few people are betting on falling prices and taking leveraged low positions.
Due to this, Bitcoin’s headwinds at spot rates appear minimal, giving buyers leverage to push higher. With BTC having firmly broken above $60,000 and now on the cusp of closing above $66,000, there could be further gains in the coming days.
Looking at the daily chart, there are hints that buyers are in full control. For the first time, Bitcoin is moving within a bullish breakout pattern. Losses from July 4 and 5 have been completely reversed.
At the same time, the coin is trading above the middle BB for the first time in over four weeks. The last time a full bar closed above the energetic support line (previous support) was on June 11.
The current rally will be key for buyers, especially those expecting the uptrend to continue. This comes after a price rebound following the FTX crash in slow 2022, when BTC fell below $16,000.
The gains in mid-2023 set the stage for another run to record highs above $73,000. Still, the May-July decline sent the coin down 26%, its biggest correction ever, according to Glass knot.
Traders are coming back, few BTC holders want to sell
The expansion is accompanied by rise in short-term holders (STH) by 200,000 BTC over the past week. STH holders are entities, mostly traders or speculators, who have held the coin for no longer than 155 days.
The boost in STH supply comes after modern data showed that fewer and fewer addresses are willing to sell Bitcoin.
From May 2021 to July, the number of addresses selling Bitcoins cut from 234,000 to 22,000. This means that despite price fluctuations over the last few weeks, especially in June, more holders believe that the future is brilliant.
Featured image from Canva, Chart from TradingView
