Today’s metric shows that BTC is trading at $46k and that the price could further incline to $50k. This is great news coming from the crypto world, considering that Bitcoin was below the $43k level on Tuesday. Tuesday’s market crash saw BTC dwindle by over 20% within an hour after hitting $53k, settling at $43k.
BTC was about to shake the 55k level for the first time before the flash crash, bringing everyone to terms with the bearish market outlook in September. Luckily, the BTC price recovered from the fall, rising above $45k. Tuesday’s volatility rate saw Bitcoin lose its stronghold on the $45 to $50k price, but current market indicators show that BTC is gradually gearing up to the safe zone.
Whale Activity On Derivative Platforms a Contributory Factor to the Rise
Experts pointed to the rising whale activity as a factor that positively impacted the rise of BTC. Derivative platforms shifted their BTC holdings from cold storage to centralized exchanges. It’s also believed that the low supply of BTC on various exchanges influenced the rise of BTC.
Ki-Yong Ju of CryptoQuant stated that the move opened a new position and filled existing margin gaps. Ju, after analyzing the indicators emphasized that price goes up in the long-term after accumulation. The majority of the derivative positions seemed long, signifying a bullish run, which could see BTC shoot up to $50k.
Low Liquidity Could Drive BTC Prices to the Top
At the moment, the BTC price is looking solid and could return to its $50k level, just like how it was midway through August. BTC availability on exchanges is almost record low, while demand is skyrocketing. Judging by the long position of the derivative whale accumulation, BTC will benefit from the crisis undoubtedly.
CryptoQuant revealed on Twitter that FTX exchange had a massive outflow of BTC of approximately 16k from the platform, leaving a balance of about 33k BTC. Although the transfer could mean nothing, experts say that such a huge outflow could further decrease BTC supply on exchanges.
BTC could undergo another flash crash in the upcoming days, but it’s nothing to be scared of. The market crashes over the last two weeks, and the metrics are simply building up for a historic bullish run. The momentum will shoot the price of BTC to between $50k and $55k, and then the top currency will build a stronghold in that range for a couple of months. It’s by then that BTC will either maintain its resistance or go down.