Bitcoin (BTC) has crossed the $65,000 mark, inspiring investors to think that a rally is about to begin. Let’s figure out what might hinder further growth.
Bitcoin’s recent rise has investors optimistic that BTC could soon surpass $70,000. The currency last reached these levels almost three months ago. However, long-term holders (LTH) could become a potential threat if they decide to sell their holdings and take profits.
What does Bitcoin need to reach $70,000?
It is known that Bitcoin usually rises in the fourth quarter. However, the BTC rally depends on more than just investor sentiment and behavior.
Matt Mena, 21.co cryptocurrency research strategist, explained what other factors could influence the price to rise to $70,000.
Mena also noted that the upcoming elections in the United States will play a significant role in determining the trajectory of BTC.
However, we should not forget that, having risen to $65,000, Bitcoin reached an almost two-month high. This may cause long-term holders to consider selling. Historically, they tend to sell when prices are at their peak. Such activity can significantly affect the market.
The Liveliness indicator is now showing growth. This metric helps evaluate the age of coins involved in transactions and analyze the behavior patterns of their owners. Its importance increases when market participants spend old coins, setting them in motion. Sales of assets by long-term holders may lead to a price correction.
Long-term holders are the backbone of Bitcoin. If they start selling in large quantities, it could increase volatility and potentially cause a pullback.
BTC Forecast: Change is Coming
Bitcoin has successfully turned the $65,000 level into support. The next important goal is to do the same with the $70,000 level, which will be the key to continuing the uptrend.
BTC has already exited the ascending symmetrical triangle pattern, suggesting a 35% upside with a potential target of $81,556. However, a more realistic forecast points to the next target around $70,000.
Growth above $70,000 will require strong investor support and favorable macroeconomic conditions. If these factors do not materialize and long-term holders start selling aggressively, the currency risks difficulty even breaking through $68,500. In such a scenario, BTC faces losing support at $65,000, which would cancel the bullish outlook and lead to further declines.
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Source: Cryptocurrency
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