Over the past few weeks, after a series of corrections, Bitcoin and the broader cryptocurrency market have seen a significant rally from the 2024 lows.
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The momentum gained notable momentum on Friday after Federal Reserve Chairman Jerome Powell announced a policy shift, hinting at a possible interest rate cut in September. The announcement fueled optimism among investors, leading to increased market activity.
Additionally, valuable data from Glassnode reveals that long-term holders (LTH) are making a steady $138 million in profits every day. But what does this mean for the market going forward?
Daily capital inflows into Bitcoin are essential for price stability.
Long-term Bitcoin (LTH) holders have been making steady gains over the past few months, even amidst market uncertainty and volatility. According to Long-term Bitcoin holders net profit/loss chart From Glassnode, LTH is currently selling Bitcoin at a rate of roughly $138 million per day. This selling pressure acts as a key market benchmark, indicating how much new capital needs to flow into Bitcoin each day to balance the selling and stabilize the price.
If daily inflows into Bitcoin fall below this record high of $138 million, the price could face downward pressure due to continued LTH sales. This dynamic underscores the delicate balance between buyer demand and LTH’s profit-taking activities.
As the market continues to grapple with this phase, it will be particularly interesting to watch Bitcoin price action in the coming weeks. Whether new investor inflows can keep up with or outpace this selling pressure will be important to determine the next major move for Bitcoin.
Bitcoin Breaks $64,900 Barrier: What’s Next?
Bitcoin is currently trading at $64,360, as of this writing, after enduring weeks of aggressive selling pressure, fear, and uncertainty that caused its price to drop to $49,577 just 20 days ago.
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Now, Bitcoin is approaching the $65,000 level after two successful candles closing above the crucial 200-day moving average — a key indicator used by investors to determine bullish or bearish market structure.
This development suggests that Bitcoin is regaining its strength, but it must hold above this indicator and ideally test it as support to maintain the uptrend.
If Bitcoin can hold this level, then surpassing the $65,000 level will be an easy task, with the next target likely to be around $67,000. However, if the price fails to stay 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 using Dall-E, chart from Tradingview.com
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