Home Business News Is it time to invest? Bitcoin price set for a 20% rise

Is it time to invest? Bitcoin price set for a 20% rise

13th Jun 24 8:35 am

It seems that retail traders are confident about a Bitcoin (BTC) price rebound despite the recent correction, with its market value surpassing $67,560.

Data on derivative traders on Binance shows that 70.25% of accounts on the platform hold net long positions on Bitcoin, indicating that they mostly expect the asset to rise and see the recent correction as an opportunity to buy Bitcoin at a lower price.

Bitcoin has lost nearly 4% of its value in the past seven days, but the price rose by about 1% yesterday.

According to the latest information in the cryptocurrency market, $18.85 million worth of long Bitcoin positions were liquidated in the past 24 hours after the price correction.

Here, the volume of long liquidations exceeds that of short trades. Despite the large-scale liquidation of long positions, traders continue to trust in an imminent Bitcoin price increase.

Ethereum (ETH) rose more than 3% yesterday following massive exchange outflows, increased whale buying pressure, and the US Consumer Price Index (CPI) for May, which reported a decline in inflation. The Federal Reserve’s decision to keep interest rates unchanged for a longer period also played a role.

From my perspective, the large withdrawals were seen as a bullish sign, indicating that investors are opting to hold their funds in personal wallets rather than keeping them on exchanges for quick trading.

This usually reduces the amount of stock on exchanges, which could lead to price increases due to increased scarcity. However, Bitcoin’s price has not risen as expected, even with the large withdrawal volumes. This phenomenon suggests that other market forces are currently affecting Bitcoin price movements.

Therefore, I believe that the macroeconomic conditions affecting the overall cryptocurrency market have led to cautious sentiment, which might be one explanation for the current sideways movement. The actions of institutional investors are another factor to consider. These organizations are now managing their cryptocurrency holdings differently.

In my opinion, institutions may be transferring their assets off exchanges due to regulatory and security reasons, rather than preparing to sell, given the availability of more advanced custody solutions. This trend aligns with the anticipated shift towards decentralized financial practices and self-management. Data indicates a decrease in Bitcoin reserves on exchanges over the past month.

Thus, this trend could be part of a larger strategy by long-term investors, or whales, to reduce the volume of their holdings in anticipation of future market moves. Although this withdrawal activity does not always lead to immediate price increases, it may signal confidence in Bitcoin’s long-term value.

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