Bitcoin recently experienced a sharp rise, reaching $63,000 following the U.S. Federal Reserve’s anticipated policy shift. On September 18, the Fed lowered interest rates for the first time in years, reducing borrowing costs and increasing investor interest in riskier assets like Bitcoin. This move has positively impacted key on-chain metrics, paving the way for a potential recovery in Bitcoin’s price in the coming hours.
Bitcoin Whale Interest Spikes Amid Short Liquidations
Bitcoin’s price has seen a significant increase in short liquidations as it broke past $63K in response to the Fed’s decision. According to Coinglass, Bitcoin liquidations totaled nearly $84 million, with $71 million in seller positions being closed.
Reports from IntoTheBlock highlight that around 88% of Bitcoin holders are currently in profit, with 12% breaking even. Interestingly, no investors are facing losses at this time.
Related: Bitcoin Faces Risk in a High Volatility Zone
Further insights from IntoTheBlock show that 71% of Bitcoin investors are long-term holders, having been part of the ecosystem for over a year. An additional 25% entered the market within the last 12 months, while only 5% joined in the past 30 days.
The recent price surge has also attracted significant interest from Bitcoin whales, with the number of large transactions increasing from 12.5K to 16.5K. This uptick in whale activity could bolster Bitcoin’s support levels, raising the possibility of a recovery above $70K in the near future.
Moreover, the supply of Bitcoin held by short-term holders (STHs), those who purchased within the last 155 days, has dropped considerably. As STHs hold their coins for longer periods, transitioning into long-term holders (LTHs), this shift reflects a growing trend toward longer-term holding. The 15% decrease in STH supply, the largest since 2012, signals a positive outlook for Bitcoin’s long-term stability.
What’s Next for BTC Price?
Bitcoin has formed a bullish pattern as buyers successfully pushed the price above key resistance levels. The cryptocurrency broke through prolonged bearish consolidation around $60K, reaching a recent high of $63.5K. At the time of writing, Bitcoin is trading at $63,334, a 5.4% increase over the past 24 hours.
The price has surpassed the 23.6% Fibonacci retracement level and remains well above the 20-day EMA trend line, setting its sights on further bullish targets. The current level is crucial for maintaining upward momentum; a drop below this could lead to a retest of the $61K support.
As the Relative Strength Index (RSI) hovers near the overbought region at 71, Bitcoin may experience a minor correction in the short term.
However, if the price holds above the 20-day EMA, Bitcoin could push past $65,000, setting the stage for a potential recovery toward $68,000 and possibly extending to $70,000.
