Key Points
- Bitcoin [BTC] shows potential for higher price movement, signaling a bullish trend.
- Institutional interest in Bitcoin continues to grow, strengthening its upward momentum.
Bitcoin [BTC] has demonstrated a potential for an upward price movement after closing above the Bull Market Support band. This occurred after three consecutive weeks of staying below it.
Despite brief deviations, the price action now appears to have a bullish trend. The current level of around $67k acts as a key liquidity zone.
Bitcoin’s Bullish Trend
A strong volume breaking through the liquidity zone and staying above it instills confidence in traders and investors to go long. Others might add to their positions.
The institutional interest in Bitcoin is growing, fuelling its upward momentum. Recently, Semler Scientific purchased an additional 83 Bitcoin, worth $5 million. This increased their total holdings to 1,012 BTC.
With this acquisition, they are now the fourth-largest Bitcoin-holding company in the US, excluding miners.
Bitcoin and S&P 500 Divergence
Bitcoin price movements often reflect those of the U.S. stock market, particularly the S&P 500. However, BTC remains 20% below its July level and 30% below its March 2024 level, despite the market trading near all-time highs.
This divergence presents an opportunity to buy BTC, with the expectation that it will catch up to the stock market’s recovery.
Lastly, the increasing supply of stablecoins like USDT and USDC also supports a higher BTC price. Over the past three months, their market capitalization has grown by 3%, indicating rising demand.
With BTC supply growth slowing after the halving, this increasing demand suggests that price is likely to continue climbing higher.
