Bitcoin’s Bull Rally Hinges On $57K Support Level—Here’s Why It Matters
18 October 2024 - 12:00PM
NEWSBTC
Bitcoin (BTC) has continued its ascent in recent weeks, reclaiming
major highs. However, recent analysis suggests that the $57,000
level could be one of the most critical support points for the
ongoing bull rally. This insight comes from a CryptoQuant analyst,
Burak Kesmeci, who highlighted the role of Bitcoin Spot
Exchange-Traded Funds (ETFs) in shaping the market stance. Related
Reading: Analyst Says This Bitcoin Price Rally Has A ‘Different
Ring To It’, Places Next Target At $109,000 Bitcoin Resilience At
The $57,000 Level Spot ETFs have emerged as a major instrument in
the Bitcoin ecosystem, offering a regulated entry point for
institutional investors. According to Kesmeci, the average cost of
Bitcoin Spot ETFs has been a key support level throughout 2024,
providing a foundation for the asset’s price stability. This level
is pegged at $57,000 and has held firm throughout the year, with
only two significant exceptions. The $57,000 price level is
significant because of its technical support and the
psychological implications for Spot ETF investors. Could the
Average $BTC Spot ETF Cost (57K) Be the Most Crucial Support Level
in the Bull Rally? “The price of #Bitcoin managed to stay above
this level throughout the year, with only two exceptions.” – By
@burak_kesmeci Full post 👇https://t.co/troZDKwKNw
pic.twitter.com/IWqNJ2L6Kg — CryptoQuant.com (@cryptoquant_com)
October 16, 2024 Bitcoin’s price dipped below this support level
twice in 2024. The first instance was in early August, driven by
Japan’s market turbulence, and the second in September due to a
sharp price correction. Despite these market shocks, Spot ETF
investors did not react with panic selling. Kesmeci wrote: Bitcoin
Spot ETF investors proved, contrary to the expectations of many,
that they are not weak hands. Foundation Set For Positive Move
According to the CryptoQuant analyst, these investors demonstrated
resilience by holding onto their investments, even when unrealized
losses mounted. Their ability to withstand market pressure
contrasts with typical behavior in other speculative sectors, where
sudden price drops often lead to mass sell-offs. This suggests that
Spot ETF investors have grown more comfortable with Bitcoin’s
inherent volatility, recognizing its long-term potential. The
analyst highlighted that minor outflows during these turbulent
periods were not significant enough to disrupt the broader market.
Even during Japan’s “carry trade” crisis, where many expected a
stronger market correction, the overall sentiment among Spot ETF
investors remained calm. In conclusion, Kesmeci noted: As you can
see from the chart above, the average cost of Bitcoin Spot ETFs has
become perhaps the most crucial support level in the 2024 bull
rally. With this long-term perspective, the contribution of Spot
ETFs to the Bitcoin rally has laid a solid foundation for the
potential developments in the market’s future. Featured image
created with DALL-E, Chart from TradingView
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