Bitcoin approached $69,000 yesterday, achieving a new local high and reinforcing the upward trend that commenced in September. This movement has sparked optimism among analysts and investors, who are now looking forward to substantial profits in the weeks ahead.
Market participants are confident that Bitcoin is poised for a significant rally after seven months of being flat.
Data from Santiment shows that the number of Bitcoin whales—significant holders of BTC—increased markedly as the price hit a low around $59,000 on October 10th.
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This uptick in whale activity is often interpreted as a signal of “smart money” getting ready for a major move. The accumulation of BTC by large investors during a price dip implies they are gearing up for something substantial in the near future.
As enthusiasm grows, market participants are on high alert for additional indicators that Bitcoin might reach new all-time highs. With momentum favoring it, Bitcoin looks prepared to guide the market into the next phase of this cycle.
Bitcoin Whale Activity Contributes to Positive Sentiment
Bitcoin is currently trading close to the historically significant price level of $70,000. This critical zone has repeatedly served as resistance, pushing the price down on five occasions in the last seven months. Each approach to this level has resulted in sell-offs or corrections, inducing caution among traders and investors.
Nonetheless, recent findings from Santiment suggest that this resistance may be diminishing due to increasing whale movement. Between October 10th and 13th, there was a net increase of +268 wallets holding between 100 to 1,000 BTC, indicating that major players are accumulating Bitcoin as its price rises.
Analysts frequently view an increase in whale wallets as a strong bullish sign, indicating that influential investors are positioning themselves for potential upside in the forthcoming months.
This accumulation is particularly important, as it aligns with Bitcoin’s rising momentum, signaling that these major players anticipate further increases. With more large holders entering the market, the opportunity to buy Bitcoin at agreeable prices is decreasing.
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This trend suggests that whales are betting on a prolonged bull run, likely undermining the $70,000 resistance level and facilitating Bitcoin’s climb.
As Bitcoin trades around this key price area, the following weeks could prove critical, either leading to a breakthrough of $70,000 or triggering another correction.
BTC Testing Supply Levels
Bitcoin is currently priced at $68,383 following a series of consistent highs, steadily approaching new supply levels. The price has recently stalled at $68,998, and it seems ready to challenge new all-time highs.
This surge has fostered a wave of optimism, though analysts warn that a healthy pullback may soon be necessary.
The 200-day moving average (MA), presently at $63,322, presents a vital level to monitor. A retracement to this support area could indicate strength for a renewed upward push since it has historically served as solid support in uptrends. Sustaining a position above the 200-day MA is essential for retaining bullish momentum.
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Should Bitcoin fail to surpass the $70,000 resistance in the upcoming week, a retracement to lower demand zones is anticipated. This decline would facilitate the market to regain liquidity and reset for a likely new rally.
Investors are vigilant as the upcoming price actions will significantly shape Bitcoin’s long-term perspective.
Featured image from Dall-E, chart from TradingView
