Bitcoin Bulls Take Charge, Traders Flow Back: Up Next $72,000?

Bitcoin is rising, trading firmly above the psychological round number at $60,000, looking at the formation in the daily chart. As BTC turns the corner, there could be more room for gains, even pushing the coin above local resistances at $66,000 and $72,000.

Bitcoin Bulls Dominate: Up Next $72,000?

In a post on X, one analyst notes that the average dominance of long-position liquidations has decreased to zero. This means buyers are increasingly building up their positions and dominating bears, as seen from June through the first half of July.

Of note, the drop in the average dominance of long position liquidations to zero suggests that few people are betting on dropping prices and taking leveraged short positions equally.

For this reason, Bitcoin headwinds at spot rates appear minimal, giving buyers an upper hand to push higher. With BTC decisively breaking above $60,000 and now on the cusp of closing above $66,000, there could be more gains in the coming days.

Looking at the daily chart, there are hints that buyers are firmly in charge. For once, Bitcoin is trending within a bullish breakout formation. Losses of July 4 and 5 have been comprehensively 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 higher push will be crucial for buyers, especially those expecting the uptrend to continue. It comes after prices rebounded from the FTX collapse in late 2022, which saw BTC drop below $16,000.

Gains from mid-2023 formed the base for another expansion to all-time highs above $73,000. Even so, the contraction from May to July saw the coin drop by 26%, the largest correction ever, according to Glassnode.

Traders Flowing Back, Few BTC Holders Willing To Sell

Accompanying the expansion is the rise in short-term holders (STH) by 200,000 BTC over the past week. STH holders are entities, mostly traders or speculators, who have held the coin for no more than 155 days.

This buildup of STH supply comes as fresh data shows that fewer addresses are willing to sell Bitcoin.

From May 2021 through July, the number of addresses selling Bitcoin fell from 234,000 to 22,000. This means that despite the price fluctuation of the last few weeks, especially throughout June, more holders believe the future is bright.

Feature image from Canva, chart from TradingView