Bitcoin is on the rise, trading firmly above the psychological round figure of $60,000, looking at the daily chart formation. As BTC turns the page, there could be more room for upside, even pushing the coin above local resistances at $66,000 and $72,000.
Bitcoin Bulls Dominate: Will $72,000 Be Next?
In an article on X, an analyst Remarks that the average dominance of long position liquidations has decreased to zero. This means that buyers are increasingly strengthening their positions and dominating the bears, as seen from June to the first half of July.
It is worth noting that the decline in the average dominance of long position liquidations to zero suggests that few people are betting on falling prices and taking equally leveraged short positions.
For this reason, Bitcoin’s headwinds to spot rates appear minimal, giving buyers an advantage to push higher. With BTC having decisively broken the $60,000 mark and now poised to close above $66,000, there could be further gains in the days ahead.
Looking at the daily chart, we can see that buyers are firmly in control. For once, Bitcoin is moving in a bullish breakout formation. The losses from July 4 and 5 have been completely reversed.
At the same time, the coin is trading above the middle BB for the first time in over four weeks. The last time a full bar closed above the dynamic support line (previous support) was on June 11.
The current push higher will be crucial for buyers, especially those expecting the uptrend to continue. It comes after prices rebounded following the FTX Collapse late 2022, which saw BTC drop below $16,000.
The mid-2023 gains formed the basis for a further expansion to all-time highs above $73,000. Despite this, the May-July contraction saw the coin fall 26%, the largest correction on record, according to Glass node.
Traders Return, Few BTC Holders Willing to Sell
The expansion is accompanied by the increase among short-term holders (STH) of 200,000 BTC over the past week. STH holders are entities, mostly traders or speculators, who have held the coin for up to 155 days.
This buildup of STH supply comes as new data shows that fewer addresses are willing to sell Bitcoin.
From May 2021 to July, the number of addresses selling Bitcoin fell from 234,000 to 22,000. This means that despite the price fluctuation of recent weeks, especially throughout June, more holders believe the future is bright.
Main image from Canva, chart from TradingView
