Over the past few weeks, following a series of corrections, Bitcoin and the broader cryptocurrency market have experienced significant growth on the back of lower 2024 prices.
Momentum picked up particularly Friday after Jerome Powell, the chairman of the Federal Reserve Board of Governors, announced a policy change, hinting at a potential rate cut in September. The announcement fueled optimism among investors, leading to a surge in market activity.
Additionally, valuable data from Glassnode reveals that long-term (LTH) holders are locking in consistent profits of $138 million in profit per day. But what does this mean for the market going forward?
Daily capital inflows into Bitcoin are key to price stability
Long-term bitcoin (LTH) holders have consistently secured profits over the past few months, even amid market uncertainty and volatility. According to Realized Net Profit/Loss Chart for Long-Term Bitcoin Holder from Glassnode, LTH is currently selling Bitcoin at a rate of around $138 million per day. This selling pressure serves as a key benchmark for the market, indicating the amount of recent capital that needs to flow into Bitcoin each day to offset the sales and stabilize the price.
If daily Bitcoin inflows fall below that $138 million, the price could potentially face downward pressure due to ongoing LTH selling. This energetic highlights the tender balance between buyer demand and LTH profit-taking activity.
As the market continues to navigate this phase, it will be particularly engaging to watch Bitcoin’s price action in the coming weeks. Whether the influx of recent investors can match or exceed this selling pressure will be key in determining BTC’s next substantial move.
BTC breaks through $64,900: what’s next?
At the time of writing, Bitcoin is trading at $64,360, after weeks of aggressive selling pressure, fear, and uncertainty that saw the price drop to $49,577 just 20 days ago.
Currently, BTC is approaching the $65,000 level after two successful daily candles closed above the key 200-day moving average – a key indicator that traders employ to identify bullish or bearish market structure.
The developments indicate that Bitcoin is regaining strength, but in order to maintain the uptrend, it needs to stay above this indicator, and ideally test it as support.
If BTC maintains this level, breaking above $65,000 should be a basic task, with the next target likely to be around $67,000. However, if the price fails to sustain above the 200-day moving average near $63,000, Bitcoin could be at risk of retesting local demand levels around $60,000.
Featured image created with Dall-E, chart from Tradingview.com
