When the price falls, you will borrow more USDT than Bitcoin. A liquidation heatmap showing where BTC is going has been published.
Bitcoin (BTC) appears to have found a local bottom near the midpoint of the downtrend channel it has followed for the past seven months.
BTC briefly touched $66,000 before beginning a correction, with many traders speculating that the fourth quarter could bring bullish momentum to the broader crypto market.
One interesting indicator that supports this sentiment is the shift from borrowing BTC during rising prices to borrowing USDT during falling prices.
Traders are increasingly borrowing USDT to “buy the dip” and increase their exposure to Bitcoin, which bodes well for the coming quarter.
Source: Hyblock Capital
Bitcoin disrupts market structure
Bitcoin’s current price action further supports this bullish outlook. After the market structure of the BTC/USD pair collapsed, the price went down after a significant long-term liquidation and reached new lows.
This local bottom sets the stage for a potential rally ahead. To maintain the bullish trend, BTC needs to break above the daily 200 moving average (200MA) and surpass last week’s high.
If Bitcoin can break through these resistance levels, the $70,000 level will be the next important target, suggesting bullish momentum will increase as the fourth quarter progresses.
Source: TradingView
MVRV and SOPR Retest for Short-Term Holders
Additional indicators such as MVRV and SOPR for short-term Bitcoin holders also show positive results.
Both indicators are retesting the neutral “1” line, indicating that a rebound from this position would confirm a more bullish outlook for BTC.
This is an important moment for short-term speculators, as a pullback here could further drive the price higher, benefiting both short-term traders and long-term holders.
Source: Bitcoin Lab
Such a scenario would increase the chances of BTC reaching new highs by the end of the year.
There is a huge amount of fluidity in the sky.
Additionally, Bitcoin’s liquidation heatmap reveals a significant amount of liquidity above current price levels.
This suggests that BTC is poised to rise, as price movements often gravitate towards areas of high liquidity.
The most substantial liquidity zone is between $63,000 and $66,000, and Bitcoin could experience a “short squeeze” if upward momentum strengthens in the coming days.
There is some liquidity below $60,000, but it’s not very concentrated. This indicates that the path of least resistance is upward.
Source: Coinglass
Read the Bitcoin (BTC) price prediction for 2024-2025
Bitcoin appears well-positioned for potential gains as the fourth quarter progresses. Indicators such as increased USDT borrowing, establishment of a local floor, and liquidity heatmap all point to a bullish outlook.
With the $70,000 level in sight, BTC is poised to end the year on a high note and may reward traders who are poised for the next step.
Next: BlackRock: Bitcoin is a ‘gold substitute’, Ethereum is a ‘bet on technology’ – why?
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