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In an analysis shared on X, crypto analyst Patric H. from CryptelligenceX lays out seven reasons why investors should be concerned about the price of Bitcoin this week. “How can anyone be a bailout here?! BTC has broken a weekly downtrend, closing above key levels, and some people are still trading under $40k?! Sorry, bears, you clearly missed the key changes in the last two weeks,” she said.
#1 Deadline Extension for the Return of Mt. Gox Bitcoin
The defunct exchange Mt. Gox filed a motion to modify the payment deadline, which was granted by the court. The new repayment deadline for the remaining lenders is now set for October 31, 2025, a full year later than the previously scheduled October 2024. This extension relieves the market of selling pressure of about 44,905 BTC (about $2.9 billion), which was expected that flood the market.
#2 China Economic Stimulus
China is expected to issue 325 billion dollars of bonds to stimulate its economy. At the same time, crypto exchange OKX launched a fully licensed trading platform in the United Arab Emirates (UAE), providing a legal way for Chinese investors to engage in cryptocurrency trading under the UAE regime. Patric H. predicts, “Chinese money will enter crypto in Q4.”
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#3 Declining Bitcoin Exchange Reserves
Bitcoin exchange reserves continue to dwindle as institutional investors and whales pile into the cryptocurrency in unprecedented amounts. This trend reflects a supply shortage in the trade, which, coupled with rising demand, can lead to a supply shock. “Ultimately, this will create a commodity shock, leading to higher prices at the right time,” the analyst noted.
#4 Surge In Bitcoin Whale Accumulation
On-chain data reveals that new Bitcoin whales are amassing fortunes like never before. Ki Young Ju, CEO and founder of CryptoQuant recently commented, “The current market volatility is just a play on the future market. Real whales move the market through spot trading and OTC markets. This is why on-chain data is important.”
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He added that these new whales are unlikely to be sold until more money from retail investors enters the market. “Look at how new whales are piling up Bitcoin; this market has never seen such accumulation,” he emphasized. Notably, the lack of correlation with US Spot ETF inflows suggests that this may be institutional accumulation of strategies.
#5 Trump Leads in Polls
Political forecasts indicate that former US President Donald Trump is gaining favor in swing states ahead of the next election. According to the latest data from Polymarket, Trump is expected to win all seven important districts. Patric H. reminds readers, “Trump is pro-crypto; Elon Musk will lead the Department of Government Efficiency (DOGE).”
#6 S&P 500 As Trailblazer
The S&P 500 index is trading at an all-time high, which is a sign of the positive history of Bitcoin and crypto. “There has never been a time in history when Bitcoin and the altcoins market did not reach the performance of the S&P 500,” said Patric H., dispelling doubts by saying, “But ‘this time is different’… yes, for sure.” The correlation between traditional markets and cryptocurrencies suggests that the bullish trend in stocks can spread to the Bitcoin and crypto sectors.
#7 It’s the season
Historically, the fourth quarter (Q4) has been the best period for Bitcoin, especially in half a year. “Bitcoin and the crypto market tend to outperform all asset classes in half a year,” the analyst said.
In support of these important reasons, technical analysis reveals a positive picture of Bitcoin. Patric H. highlights that Bitcoin closed above its weekly downtrend line, indicating a potential reversal from bearish to bullish momentum. Furthermore, the cryptocurrency is firmly holding above the 50-weeks Exponential Moving Average (EMA), an important support level. Also, the Moving Average Convergence Divergence (MACD) indicator made a bullish cross for the first time since April, which is often interpreted as a buy signal.
“Yes, there will always be setbacks. But from now on, the dips are for buying as the market structure has clearly changed from bearish to bullish,” concluded Patric.
At press time, BTC traded at $68,397.
The featured image was created with DALL.E, a chart from TradingView.com
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