Bitcoin has faced challenges recently in closing above the $70,000 threshold, a crucial level required for gaining momentum towards its historical peak. Despite numerous attempts, BTC has struggled to establish itself above this key resistance, resulting in a deceleration of bullish momentum.
Nonetheless, there are indications that major holders may be stepping in, potentially setting the stage for a renewed advance.
Bitcoin Whales Are Fueling the Optimism
Recent insights from Santiment reveal that retail investors seem to be liquidating their Bitcoin holdings while whales are taking advantage of the lower prices. This change in trading patterns is crucial, indicating that larger market participants are accumulating BTC as retail traders divest. Wallets containing 100 or more BTC have increased by 1.9% over the last fortnight, suggesting that whale accumulation is in progress.
This increase in large wallet addresses serves as a positive indicator. Typically, when whales collect assets, it signifies their confidence in the asset’s potential for future appreciation.
“As the primary stakeholders in crypto continue to acquire more coins from offloading retail traders, this historically leads to bullish results,” commented Santiment.
Read more: What Transpired at the Previous Bitcoin Halving? Forecasts for 2024
Bitcoin’s macro momentum exhibits robust signs of support, particularly regarding capital inflows. Over the past 30 days, net inflows into Bitcoin have surged by 3.3%, approximately $21.8 billion. This influx has driven Bitcoin’s Realized Cap to a new record high of over $646 billion, indicating significant capital is flowing into the market.
The rise in Bitcoin’s Realized Cap signifies a strengthening liquidity base throughout the asset class. This substantial capital influx bolsters BTC’s price increase, suggesting sustained interest from both institutional and retail investors. The increased liquidity cushions against volatility, lessening the chance of abrupt sell-offs and supporting the asset’s upward trend.
BTC Price Forecast: Aiming High
Bitcoin is trading at $67,553, with ongoing efforts to surpass the $70,000 level for the past ten days. Establishing a solid support at $68,248 is crucial for BTC to advance towards the next resistance at $71,367, a key level that could dictate the trajectory towards new highs.
The uptrend line has consistently provided support, suggesting that a move towards this resistance may occur in the upcoming weeks. The whale accumulation trend further reinforces this optimistic outlook, implying that an increase in BTC’s price could be forthcoming, regardless of the timeline.
Read more: Bitcoin Halving History: All You Need to Know
However, should Bitcoin fail to hold the support of its uptrend line and drop below $65,292 due to external economic factors or profit-taking, the bullish narrative would be compromised. Such a decline could see Bitcoin fall to $61,868, marking a potential reversal and creating added uncertainty regarding its price direction.
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