Bitcoin Choppy: Will On-chain Data Prop up Optimistic BTC Bulls?

Bitcoin is stable when writing, peeling back some losses in the past day. Even as prices teeter around $60,000, buyers stand a chance, especially if there is even more rejection of lower lows. In the short term, the zone marking support at around $57,000 to $60,000, and the resistance at around $70,000 and $72,000 will be worth watching. So far, the uptrend remains, especially if Bitcoin is stuck inside the August 8 bar.

At press time, Bitcoin is up nearly 20% from August lows and remains firm. Even though there were cracks over the weekend, the rejection of lower prices is a net positive overall. So far, Bitcoin is flat in the past trading day but up a massive 7% in the previous trading week. Most impressively, trading volume is also picking up steam, rising to over $36 billion in 24 hours.

Generally, traders are upbeat and closely monitoring the following trending Bitcoin news:

• Over the past few weeks, the Bitcoin miner reserve has been dropping. What this means is that miners are controlling fewer and fewer coins. This is understandable, given the massive dump from late April 2024 to June.
• Amid stabilizing prices, on-chain data shows that traders are cautious and choosing to stay on the sidelines, at least for now. The rise in open interest versus the BTC exchange reserve could ignite demand, pushing speculators back into the picture.

Bitcoin Price Analysis

The BTC/USD uptrend remains, at least for now.

As long as prices trend above the $57,000 level or June and May lows, every low may present entries for aggressive traders.

If the uptrend remains and buyers take over, the first target would be $66,000 and later $70,000. This outlook will be especially so if there is a breach above $63,000—the local resistance.

Conversely, conservative traders can wait for a decent close above $70,000 or drop below $50,000 before committing.