The leading digital asset has been stuck in a persistent bear market over the past several months, currently trading at around $64,500 (a nearly 50% decline from its ATH set last year).
Despite the negative environment and waning investors’ interest, certain factors suggest that the bulls might be preparing to take over soon.
The first bullish signal comes from the renowned analyst Ali Martinez. Just a few days ago, he revealed on X that BTC has formed a bullish divergence on the weekly chart, noting that the last time this happened, the price exploded by more than 700%.
Should history repeat itself, the asset could skyrocket above $500,000. It’s a scenario that seems almost impossible amid the current market depression, but the crypto sector has a habit of surprising investors.
The second element is the declining amount of BTC stored on exchanges. CryptoQuant revealed that the figure has dropped to approximately 2.7 million units, the lowest since late June. This development indicates that many investors have abandoned centralized platforms and moved their holdings to self-custody solutions, thereby reducing immediate selling pressure.
Last but not least, the X account BSCN revealed that investors holding between 1,000 and 10,000 BTC have purchased 66,700 coins over the last two months, marking their strongest accumulation since February. Similar developments reduce the immediately available supply and the selling pressure. They can also be mimicked by smaller investors who tend to copy whales.
The primary cryptocurrency charged toward $65,000 earlier today but was halted there and slipped by around a grand before it found support at $64,000. X user Crypto Catalysts noted the resurgence, arguing that the rally towards $100,000-$105,000 had begun.
“Next move towards 70k and after a sound correction towards 80k and eventually towards the main target of 100k,” they predicted.
It is important to note that over the past few months, BTC has attempted several decisive comebacks, yet the bears have intercepted each push. Thus, it is wise for bullish investors to keep expectations realistic.
The post 3 Reasons Why Bitcoin (BTC) Could Rally Soon appeared first on CryptoPotato.
