There Is a High Probability That the Bitcoin Price Rally Will Continue as Institutions Continue to Deplete the Bitcoin Over-The-Counter Supply

• On Wednesday, the price of Bitcoin broke the $63,000 mark, leading to liquidations approaching $300 million.
• Bitcoin might continue its upward movement towards $65,000 due to anticipated growth in demand on major trading platforms.
• Given the current hype among investors, it’s important to proceed with caution due to the high likelihood of a market correction.

Bitcoin’s price may continue to rise as the supply of BTC dwindles among over-the-counter (OTC) desks. It is probable that institutions will turn to public exchanges, which could create buying pressure and support the pioneer cryptocurrency. 

The Over-The-Counter Supply of Bitcoin Is Depleted by Institutions

Bitcoin’s price has been on a remarkable upward trend this week, surpassing two significant milestones: $55,000 on Tuesday and the psychological barrier of $60,000 on Wednesday. The most recent development has resulted in nearly $300 million in overall liquidations.

During the increase, Glassnode, a company specializing in on-chain market data, reported a significant decrease in the amount of BTC available over the counter (OTC), potentially prompting institutions to purchase Bitcoin from public exchanges. The upcoming surge in demand may propel the price of Bitcoin beyond $61,000.

Investment from financial institutions continues to be the primary catalyst for the wealth management sector’s interest in ETFs. According to a report on Wednesday, the appeal of BTC ETFs has exceeded that of Gold. Bloomberg’s Eric Balchunas mentioned that there is a good possibility that the assets under management (AUM) for Bitcoin ETFs could exceed those of Gold ETFs in under two years.

This week saw significant price movements in Bitcoin, driven by substantial capital entering the market. As a result, the Bitcoin realized cap has almost completely bounced back, reaching $467.2 billion. The present amount is merely 0.22% lower than the highest point of $468.3 billion, according to Glassnode information.

During the significant increase in Bitcoin value, an online expert on X, @DaanCrypto, pointed out that Bitcoin has not experienced a drop of over 5% for more than a month. That’s because of its rise past the $38,500 mark. This demonstrates determination among the bulls, as investors are controlling their urge to book profits.

The Forecast for the Price of Bitcoin as Over-The-Counter Holdings of Bitcoin Decrease

The price of Bitcoin continues to stay above the psychological threshold of $63,000, showing the possibility of further increases as momentum grows. There is a high probability that BTC will reach its previous peak of $69,000 from November 10, 2021, due to the upcoming BTC halving.

To potentially reach the $69,000 record high, Bitcoin’s price needs to surpass and stay above $63,329, which is the middle point of the range between $62,905 and $65,664. Currently, the price of Bitcoin is approximately 10% lower than its highest price.

Technically speaking, the chances still lean towards the positive side despite the increased risk levels of a potential correction due to the overbought status highlighted by the Relative Strength Index (RSI). When the Spent Profit Output Ratio (SOPR) is above 1, it indicates that the individuals who spent the outputs are making a profit during the transaction.

The upward trend of the RSI indicates increasing momentum, fueled by the significant number of bullish investors in the market. These indicators, the Moving Average Convergence Divergence (MACD) and Awesome Oscillator (AO), are both currently in a positive zone, reinforcing the optimistic outlook. 

BTC/USDT 1-day chart

Conversely, when the RSI is above 70, it indicates that BTC is significantly overbought and vulnerable to a potential correction, particularly with the SOPR above the one threshold.

In the event that the bears take control of the market, the price of Bitcoin might revisit the $55,000 milestone or drop to the $50,000 level.