Bitcoin has slumped on the charts over the past week, falling back down under $60,000 per coin at press time. The top coin is currently sitting at $58,524.69, down 4% in the last seven days. BTC has had an overall stellar year that saw it reach an all-time high. However, the asset has found it difficult to surge further over the summer for multiple reasons.
On the flip side, bulls are looking at many possible catalysts for Bitcoin to rebound in the final months of 2024. A new indicator has flashed that could spell out a price climb, revealing that Bitcoin reserves on exchanges have hit new lows for the year. This paints a bullish picture that could result in buying activity rising.
According to CryptoQuant’s observation, bitcoin’s decrease in reserves suggests reduced selling pressure. In turn, this could pave the way for a bullish market if demand continues to rise. With fewer bitcoins available on exchanges, liquidity diminishes. This makes immediate sales less feasible. Such a pattern reflects a market dominated by long-term investors, who would in turn want to hold onto their assets in anticipation of future price appreciation.
Bitcoin To Return To New All-Time Highs Come The Fall?
The demand for Bitcoin is expected to climb indeed, as it remains the talk of the town for investors and on a government level. Crypto has been a hotbed of discussion in the US government as well as during the ongoing election race. Republican candidate Donald Trump has made many promises in support of cryptocurrency, especially Bitcoin. He also spoke at this past summer’s Bitcoin Conference in Nashville, TN, further praising the asset and endorsing it as a currency that can help the US Dollar. Some optimists see a surge coming in the final weeks of the election if the votes favor Trump.
Furthermore, Since Bitcoin reached its all-time high of over $73,000 in March, bulls have believed that the next possible target is $100,000. Several analysts have been suggesting that BTC could move beyond the $70,000 mark again very soon, which could catalyze that $100k path. If trading volume on big exchanges picks back up, the demand could see BTC surge.
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Lastly, the Fed’s incoming decision on cutting interest rates could spell the start of a bull market, led by Bitcoin. The entire market is hopeful to rise if rates are cut for the first time in over a year, signaling the inflation battle is over. All of these factors together in the next two months flash a bullish signal for Bitcoin, meaning it won’t stay under $60,000 for too long.