- BTC might hike to $67,269 in the first phase of the projected upswing
- The liquidation levels showed a bearish bias that may soon be invalidated
Things might have changed for Bitcoin [BTC] after the completion of its 4th halving. However, in terms of its price, the more things change, more they remain the same. AMBCrypto came to this conclusion after tracking its coin transfers to derivative exchanges. According to data from CryptoQuant, the number of BTC sent to derivative exchanges has increased significantly.
Specifically, we observed that this has been the handwork of whales. Historically, when this happens at a fast rate, it implies that whales are preparing to open long Bitcoin positions.
Source: CryptoQuant
Big guns are becoming aggressive
Pseudonymous on-chain analyst datascope also commented on the activity. According to datascope who shares his thoughts on CryptoQuant,
“The increase in transfer rates of Bitcoin from exchanges to derivative exchanges is considered an important indicator. Recent data indicates that these types of transfers have been a significant factor in the rise of Bitcoin prices.”
Bitcoin’s price, at press time, was $63,572, Here, it’s worth noting that before the halving, AMBCrypto had argued that the number one cryptocurrency could already be priced in.
However, the stalemate might switch to the upside based on our latest analysis. The liquidation levels are one indicator fueling this prediction.
Liquidation levels revealed estimated price levels where a liquidation event might occur. For context, liquidation happens when an exchange forcefully closes a trader’s position. This is either due to an insufficient margin balance or a high-leveraged bet that went in the opposite direction.
At press time, a cluster of liquidity appeared from $65,434 to $67,269, suggesting that Bitcoin’s price might target those levels in the short term.
Another thing we noticed was that there has been aggressive buying since the drop below $64,000. If the buying pressure increases, longs with low leverage might be rewarded soon.
Bears won’t survive what’s coming
Finally, we considered the Cumulative Liquidation Levels Delta (CLLD). At the time of writing, the CLLD was positive. Negative values of the CLLD indicate more short liquidations.
On the contrary, a positive reading implies that there have been more long liquidations. However, this indicator also has some effect on the price.
Source: Hyblock
From the indications above, it can be seen that the CLLD revealed a bearish bias. However, whales’ entering their orders with the current liquidity might reverse the signal.
In this situation, the price might fall and trigger some stop losses. And yet, once a part of the liquidity has been flushed out, the price might begin to make its way back up.
Read Bitcoin’s [BTC] Price Prediction 2024-2025
Should this be the case moving on, Bitcoin might rally, and hitting $75,000 could be an option in the mid-term. In the short term, however, BTC could drop lower than $63,000 before the pump begins much later.
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