Bitcoin (BTC), the world’s largest cryptocurrency, has been stuck in a choppy range for over six months. Yet, recent weeks have seen a surge in interest from investors and whales.
On September 10, 2024, a prominent crypto analyst posted on X (formerly Twitter) that over the past two months, more than 236,155 BTC, worth approximately $14.22 billion, have been withdrawn from cryptocurrency exchanges.
To find out, we’ll dive deep into the technical analysis, examining key indicators and patterns that suggest a potential rally. Ready?!
Typically, tokens withdrawn from exchanges are viewed as a positive sign of accumulation. However, despite this trend, BTC has remained in a sideways trajectory, often hovering near the lower end of a parallel channel pattern.
The analyst also highlighted that the estimated leverage ratio across all crypto exchanges has reached its highest level in 2024. This suggests that not just investors, but Bitcoin traders are also taking on high levels of risk. This combination of data points to the potential for a significant Bitcoin rally in the near future.
Technical analysis indicates that BTC is showing bullish signs, having recently broken out of a descending trendline on the four-hour time frame. It is currently testing a critical resistance level at $57,850 and consolidating in a tight range near this mark.
Historically, if BTC breaks out of this consolidation zone and closes a four-hour candle above $58,000, it could soar by up to 13%, potentially reaching the $65,000 level.
However, this bullish thesis will only hold if BTC closes a candle above the $58,000 level, otherwise it may fail. Currently, technical indicators such as the Relative Strength Index (RSI) and the 200 Exponential Moving Average (EMA) suggest that BTC may see some price correction.
At press time, BTC is trading near the $57,500 mark, having gained 1.45% in the past 24 hours. Meanwhile, open interest has remained stable, indicating that both investors and traders may be waiting on the sidelines for a decisive breakout.
Read Also: Top Mid-Cap Altcoins About to Explode After a Three-Months-Downtrend: Here are the Year-End Targets
The stage is set for a Bitcoin bull run. Will BTC break out, or will it pull back? Only time will tell.
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