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The Bitcoin market is truly in a league of its own, especially when you compare it to traditional financial markets. While stock exchanges close after a certain hour, Bitcoin trades around the clock, every day of the week, across all time zones.
$BTC is getting closer to a massive breakout
— Elja (@Eljaboom) October 15, 2024
Cup and handle pattern in play 👀
If this breakout happens, bears will get rekt!#Bitcoin pic.twitter.com/qxCsOvtUDc
This constant trading across jurisdictions gives Bitcoin a unique liquidity profile, especially during hours when other markets are shut.
Investors can speculate, express opinions, and make trades at any time, which is both a blessing and a curse—it leads to significant price fluctuations, particularly over weekends when liquidity is generally lower.
A recent example of this occurred late in the week when Bitcoin pulled back into the $60k range. This drop was one of the most dramatic one-day sell-offs since the 2022 cycle low, highlighting the volatility of the market.
Yet, despite the typical lighter trading volume over the weekend, Bitcoin managed to bounce back, closing last week at $63,500 and ushering us to this week’s bullish levels past the $65,000 level. This recovery is a testament to the market's resilience, even in times of lower activity.
Bitcoin Demand: Demand for BTC in the Market is Strong
If we take a broader view and look at the corrections during previous bull markets, the current drawdown in 2023-24 lines up quite well with historical patterns.
The maximum drop from the local high has been -26%, which is somewhat milder than what we’ve seen in earlier cycles. This suggests that there’s a strong demand for Bitcoin, and despite the challenges, the market remains relatively stable.
However, the last few months have been some of the most challenging since the FTX collapse in late 2022, showing just how deep these recent corrections have been.
New Demand by Short Term Holders
Another positive indicator is the behavior of short-term holders. Their Profit/Loss Ratio has risen to 1.2, which is one standard deviation above the 90-day mean.
This suggests that short-term traders are seeing more consistent profits, which could lead to a positive shift in market sentiment.
When these traders begin to profit, it often brings more attention to the market and can increase buying pressure, potentially sparking further upward momentum.
Bitcoin Technical Analysis
On the technical side, there was an interesting price action recently. Sellers tried to push Bitcoin below the 20-day EMA ($62,500) on October 13, but bulls held their ground and launched a strong rally the next day.
The BTC/USDT pair is now facing resistance at $66,500. If buyers can keep the price above $65,000, there’s a good chance we’ll see a breakout toward the $70,000 level.
However, sellers are expected to fiercely defend the zone between $70,000 and $73,777.
For bears, the window to take control is closing fast. If they want to make a comeback, they’ll need to pull the price back below the moving averages.
Should that happen, the psychologically significant $60,000 support level could be tested again. The next few weeks will be crucial in determining whether bulls can maintain their momentum or if the bears will stage a comeback.
Kataryna Habeliia
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