Key Points
- Bitcoin traders capitalize on gains as BTC tests $64K resistance level, leading to a recent dip in price.
- Historical data suggests a recurring pattern of profit-taking as resistance levels are tested, with high USDT inflows signaling potential buying pressure.
Bitcoin traders recently made significant gains when Bitcoin (BTC) tested the $64K resistance level. This resulted in a price dip, leading many to question whether it’s the right time to buy.
Bitcoin’s Resistance at $64K
BTC faced strong resistance at $64K, causing a price drop of 5.55% in 24 hours to trade at $59,532. This dip came after a surge in economic optimism due to expected rate cuts, leading to speculation that traders are positioning themselves to capitalize on the next dip.
Following a bearish clash in early August, bulls are aiming for a rebound to push Bitcoin past the previous $70K resistance. However, breaking through $60K now seems challenging.
Traders’ Strategic Positioning
Historical data shows a recurring pattern of traders cashing in on gains after bullish rallies. For example, after a rally pushed BTC near $70K on July 29, USDT net outflows surged to $330 million, signaling profit-taking.
Similarly, at the end of August, traders locked in two-week profits as BTC broke through the $62K support level, leading to a price dip. This trend of profit-taking becomes apparent as resistance levels are tested.
A prominent crypto analyst recently forecasted $64K as the next resistance level for BTC. The price dipped when it reached this level, showing traders were ready to lock in their gains.
High USDT Inflows
After BTC last closed above the $64K mark on August 24, $69 million in Tether flowed out of exchanges, indicating profit-taking. However, USDT inflows have since regained control, indicating renewed interest and potential buying pressure.
Tether network recently saw a 5-month high with over 31.3K new wallets created in a single day. This rise, combined with stable BTC and Ethereum (ETH) wallet numbers, suggests new money is entering the crypto market, indicating more traders are buying the dip.
However, caution is advised as open interest has yet to recover, with bulls losing $100 million due to long position liquidations. Strong whale activity could be the key to recovering these losses.
