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Bitcoin shake-up: Weak hands exit as inflows hit $21.8B – Breakout next?

October 25, 2024
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Bitcoin shake-up: Weak hands exit as inflows hit $21.8B – Breakout next?
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  • Capital inflows into Bitcoin surged to new ATH.
  • Exit of weaker hands may have strengthened BTC’s market foundation.

Bitcoin [BTC] price movements are under close watch as recent data reveals a notable rise in net capital inflows, pointing to potentially higher prices ahead.

Over the last 30 days, capital inflows into Bitcoin have surged by $21.8 billion, a 3.3% increase, pushing Bitcoin’s realized cap to an all-time high of over $646 billion.

This growth suggests that liquidity across Bitcoin is rising, and with increased capital backing the asset, Bitcoin could be positioned for a significant price rally.

Source: Glassnode

Weak hands out as BTC retests breakout level

The price dynamics of Bitcoin this week indicate weak hands may have exited the market, creating an environment for new capital to drive the next major move.

At the start of the week, BTC saw a decline, leading some traders to pursue aggressive long positions in hopes of catching a rebound.

This created a scenario where BTC trapped some of these longs, leading to further selling pressure.

However, following this shakeout, Bitcoin’s price quickly recovered, signaling that the exit of weaker hands may have strengthened the market’s foundation.

Source: Hyblock Capital

In terms of technical indicators, BTC has recently retested its descending trend channel, which has been a crucial resistance for more than eight months.

A breakout from this channel with a successful retest suggests Bitcoin may continue its upward trajectory.

BTC reached this trend channel’s upper limit earlier, testing the $69.5K zone but ultimately pulled back.

BTC

Source: TradingView

Despite this rejection, Bitcoin has since rebounded strongly off the breakout level, with yesterday’s daily close as at press time, coming in bullish.

See also  Bitcoin halving fallout - '1st time in history' update leaves miners wary

This move could be the confirmation traders were looking for, potentially setting the stage for a rally that could challenge previous highs.

New holders to determine next move

Finally, the actions of new investors appear to be critical in determining Bitcoin’s next major price direction.

Historical data suggests that when unspent transaction outputs (UTXOs) — a measure of Bitcoin held for less than six months — show a sharp increase following a pause, Bitcoin typically sees significant price growth.


Is your portfolio green? Check the Bitcoin Profit Calculator


Recent data highlights a clear trend, indicating BTC’s price may be set for an upward move. Record-level capital inflows and aligned technical indicators make a BTC breakout look increasingly likely.

BTC

Source: CryptoQuant

As Bitcoin’s liquidity and capital levels climb, and with weak hands largely out, BTC may poised for further upward trajectory. The coming weeks will be telling, and traders will be watching for signs that BTC is ready to reach new highs.

Next: Microsoft Board says no to Bitcoin: What’s behind the decision?

READ ALSO

Bitcoin nears $91K as buying pressure soars, but challenges emerge

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  • Capital inflows into Bitcoin surged to new ATH.
  • Exit of weaker hands may have strengthened BTC’s market foundation.

Bitcoin [BTC] price movements are under close watch as recent data reveals a notable rise in net capital inflows, pointing to potentially higher prices ahead.

Over the last 30 days, capital inflows into Bitcoin have surged by $21.8 billion, a 3.3% increase, pushing Bitcoin’s realized cap to an all-time high of over $646 billion.

See also  Over 93% of Bitcoin Mined Ahead of Fourth Halving, Signaling New Era of Scarcity

This growth suggests that liquidity across Bitcoin is rising, and with increased capital backing the asset, Bitcoin could be positioned for a significant price rally.

Source: Glassnode

Weak hands out as BTC retests breakout level

The price dynamics of Bitcoin this week indicate weak hands may have exited the market, creating an environment for new capital to drive the next major move.

At the start of the week, BTC saw a decline, leading some traders to pursue aggressive long positions in hopes of catching a rebound.

This created a scenario where BTC trapped some of these longs, leading to further selling pressure.

However, following this shakeout, Bitcoin’s price quickly recovered, signaling that the exit of weaker hands may have strengthened the market’s foundation.

Source: Hyblock Capital

In terms of technical indicators, BTC has recently retested its descending trend channel, which has been a crucial resistance for more than eight months.

A breakout from this channel with a successful retest suggests Bitcoin may continue its upward trajectory.

BTC reached this trend channel’s upper limit earlier, testing the $69.5K zone but ultimately pulled back.

BTC

Source: TradingView

Despite this rejection, Bitcoin has since rebounded strongly off the breakout level, with yesterday’s daily close as at press time, coming in bullish.

This move could be the confirmation traders were looking for, potentially setting the stage for a rally that could challenge previous highs.

New holders to determine next move

Finally, the actions of new investors appear to be critical in determining Bitcoin’s next major price direction.

Historical data suggests that when unspent transaction outputs (UTXOs) — a measure of Bitcoin held for less than six months — show a sharp increase following a pause, Bitcoin typically sees significant price growth.

See also  ‘My WBTC involvement is strategic,’ Justin Sun defends WBTC custody move

Is your portfolio green? Check the Bitcoin Profit Calculator


Recent data highlights a clear trend, indicating BTC’s price may be set for an upward move. Record-level capital inflows and aligned technical indicators make a BTC breakout look increasingly likely.

BTC

Source: CryptoQuant

As Bitcoin’s liquidity and capital levels climb, and with weak hands largely out, BTC may poised for further upward trajectory. The coming weeks will be telling, and traders will be watching for signs that BTC is ready to reach new highs.

Next: Microsoft Board says no to Bitcoin: What’s behind the decision?
Tags: 21.8BBitcoinBreakoutexithandshitinflowsshakeupWeak

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Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

October 28, 2023
Tezos 2023 Outlook: An Overview of Tezos (XTZ)

Tezos 2023 Outlook: An Overview of Tezos (XTZ)

November 2, 2023
UK risks regulating NFTs the wrong way, says Mintable CEO

UK risks regulating NFTs the wrong way, says Mintable CEO

October 30, 2023
Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

August 3, 2024
Ethereum crosses $3.2K as L2 crosses new milestone: What now?

Ethereum crosses $3.2K as L2 crosses new milestone: What now?

May 6, 2024

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Supermicro Expands US Manufacturing Capacity and Development of Industry-Leading Total IT Solutions with Third Campus in Silicon Valley

Supermicro Expands US Manufacturing Capacity and Development of Industry-Leading Total IT Solutions with Third Campus in Silicon Valley

March 1, 2025
Bitcoin (BTC) Hashrate Skyrockets to Historic High: Details

Bitcoin (BTC) Hashrate Skyrockets to Historic High: Details

November 22, 2024
BlackRock’s Bitcoin ETF sees record $875M inflow—What next for BTC?

BlackRock’s Bitcoin ETF sees record $875M inflow—What next for BTC?

October 31, 2024
AGIX might be nearing peak of AI rally, here’s why

AGIX might be nearing peak of AI rally, here’s why

February 23, 2024

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