Bitcoin (BTC) Price Prediction: BTC Bulls Eye the Moon as Market Environment Turns Favorable

Bitcoin (BTC) bulls are having a field day as their Uptober dreams appear to be turning into reality. This week, the king coin made a remarkable comeback, breaching critical resistance levels.

Bitcoin [BTC] price has risen significantly in recent weeks and many analysts think it could reach the $70,000 level again. So what are the factors that support the BTC price?

Bitcoin price reached the highest level in the last three months

According to CryptoSlate data, Bitcoin price reached $68,424 on October 16, reaching its highest level in the last three months. Bitcoin price is currently trading at $67,458 and is up 0.97% in the last 24 hours and over the last seven days.

While the Bitcoin price has shown an upward trend in recent weeks, MicroStrategy Co-Founder and President Michael Saylor made the statement "We are going to the moon" regarding the rise of the Bitcoin price.

Is Bitcoin supply shock coming?

Developments other than the positive course of the Bitcoin price support investors' expectations for further rise.

Bitcoin miners produce only 450 BTC per day, and this amount is far from meeting the demand brought by the ongoing savings of institutional investors.

For example, BlackRock recently added $391.8 million worth of Bitcoin to its portfolio.

According to SoSo Value data, the total net asset of spot Bitcoin ETFs is $64.46 billion, which corresponds to 4.82% of the Bitcoin market value.

In addition, the circulating supply of Bitcoin reached 19.77 million and constitutes �.14 of the total supply.

Finally, according to CryptoQuant data, the Exchange Reserve dropped to a five-year low of 2.6 million BTC.

Due to these factors, the possibility of a supply shock is increasing.

What does the derivative data say?

To learn more about market sentiment around Bitcoin, AMBCrypto analyzed derivatives data.

According to CryptoQuant data, Bitcoin's Open Interest (OI) recently reached an all-time high of $20 billion, indicating greater participation and interest in the market.

CME Bitcoin Futures OI also reached a record level, showing increased institutional interest. Additionally, the funding rate was positive at the time of writing.

According to Coinglass data, the Long/Short Ratio of 1.02 indicates a slight bias towards long positions. These metrics show that there is general optimism in the market.

BTC is coming to $70,000

With the positive course of the market and Saylor's sights on the moon, the $ 70,000 level is on the agenda again for Bitcoin.

The six-month liquidation heat map from Coinglass shows liquidity clusters at $72,300 and $72,600 at this level, which could be the next magnetic zones for BTC price.

On the other hand, significant downside liquidity is concentrated at the $67,000 and $65,000 levels. If BTC falls by sweeping these levels, a recovery may occur.

Given the course of Bitcoin, bulls are hoping to recapture the record highs set in March.

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