Bitcoin [BTC] shows stability after a significant drop due to geopolitical tensions, indicating potential signs of short-term price increase.

Liquidity and Price Action

During substantial declines, long contract liquidations reduce selling pressure. Key liquidity levels remain stable between $68,900 and $69,300 above current price, and $56,800 to $57,400 below. A new liquidity cluster is emerging in the $66,500 to $66,800 zone, likely targeting this area soon. Despite BTC price action fluctuating between $55K and $75K for over 200 days, Bitcoin remains strong, trading above the 100-week moving average on the chart.

Indicators and Demand

Coinbase Premium tool on CryptoQuant indicates potential short-term BTC surge when a 'golden cross' forms. Demand for Bitcoin from U.S. spot ETFs is rising. By September 2023, spot ETFs had purchased 7K BTC, the highest level since July 2021. In the first quarter of 2024, spot ETFs purchased nearly 9K BTC daily, pushing prices to new heights.

Analysis of Whale Behavior

Large Bitcoin holders, or 'whales', show low levels of profit-taking, indicating confidence in future growth. Whales have been distributing BTC across addresses, with only 1,975 addresses holding between 1,000 and 10,000 BTC. Despite recent selling, profits remain minimal compared to previous cycles, supporting the notion of a BTC price increase.

A combination of liquidations, increasing ETF demand, and strong whale activity suggests Bitcoin is poised for a likely rise in prices soon.