Bitcoin needs to clear $70,000 to sustain its uptrend

Bitcoin (CRYPTO:BTC) traders are hopeful that the cryptocurrency will overcome recent sluggishness and surge past local resistance levels, with a target set up to $73,800.

To achieve this upward movement, strong buying conviction and fresh capital inflows are necessary.

Currently, Bitcoin remains stable within the bearish range observed last week, trading within the wide-ranging candlestick of September 1.

Although prices are finding support between $56,500 and $57,000, some traders question the strength of the recovery.

Data from IntoTheBlock suggests that substantial bullish support is required to continue the uptrend seen in the first quarter of 2024.

Around seven million addresses bought Bitcoin between $61,700 and $70,500, and these addresses are currently at a loss.

Traders are likely to sell when the price approaches their break-even point, which could add to selling pressure and hinder Bitcoin from reaching new all-time highs.

For Bitcoin to sustain its upward momentum and break out of its current range, it must decisively surpass the $70,000 mark with significant trading volume.

Analysts indicate that trading activity needs to exceed the volumes recorded on August 5, when Bitcoin’s price sharply declined to $49,000.

Increased engagement and volume could signal robust bullish sentiment, potentially pushing the cryptocurrency past its current resistance.

Despite potential selling pressure from recent buyers, more than 30% of Bitcoin’s supply is held by long-term holders who have maintained their positions for over five years.

This holding pattern, according to IntoTheBlock data, reflects confidence in Bitcoin’s long-term value and could contribute to price stability.

Additionally, on-chain data shows that the market has absorbed Bitcoin supply from recent sell-offs by German authorities, the U.S. Department of Justice, and Mt. Gox.

This absorption, coupled with a decline in "paper" BTC from derivative platforms like Binance, may further support Bitcoin’s price trajectory.

At the time of writing, the Bitcoin (BTC) price was $59,243.66.