Bitcoin Price Breaks 7-Month Accumulation as Whale Activity Strengthens

Cryptonews Omar El-Sharif October 20, 2024

Bitcoin Price Breaks 7-Month Accumulation as Whale Activity Strengthens

Bitcoin has broken its 7-month accumulation phase, buoyed by a surge in whale numbers and SEC approval for Bitcoin ETF options on the NYSE. Currently traded at $68,365, Bitcoin may rise towards an all-time high of $82,000 if the bullish momentum persists. However, a return to previous ranges could lead to corrections.

The Bitcoin price has recently broken through a 7-month accumulation phase as the number of large holders, commonly referred to as whales, has increased significantly. This strategic movement was bolstered by the approval of Bitcoin Exchange-Traded Fund (ETF) options by the Securities and Exchange Commission (SEC) on the New York Stock Exchange (NYSE), which has provided a vital impetus for the cryptocurrency’s recovery. As of the latest data, Bitcoin trade is witnessing marginal increases, reflecting a minimal 0.01% surge, positioning the cryptocurrency at $68,365. Despite this modest enhancement, the performance suggests that buyers are regaining their footing following a vigorous rally that commenced last week. The trend indicates a decisive breakout from a consolidation phase characterized by seven months of sideways trading amidst strengthening whale ownership. Recent analysis from Santiment illustrates that whale activity has surged, contributing to the recent price recovery. Notably, after Bitcoin dipped to its correction low of $60,000 on October 10, there was a recorded increase of 268 wallets holding between 100 to 1,000 BTC. This rise in large holdings is traditionally interpreted as a bullish sign, reigniting optimism within the market, particularly in this month referred to as “Uptober.” Additionally, the SEC’s approval for Bitcoin ETF options is anticipated to enhance liquidity for Bitcoin, thus attracting more sustained inflows and potentially driving the price further upward. Currently, the price stands only 7.5% below its all-time high, with optimistic projections suggesting that if this upward momentum continues, Bitcoin could achieve new heights of approximately $82,000. The end of the 7-month horizontal trend was marked by a breakthrough of the downsloping trendline, suggesting the decline is at an end and a potential new rally is on the horizon. However, caution remains; should Bitcoin fall back into the former consolidation range, it may face a corrective trend driven by sellers. In summary, the bullish indications provided by whale accumulation and regulatory approvals highlight a pivotal moment for Bitcoin, as the cryptocurrency stands on the threshold of potential new all-time highs.

The Bitcoin market has been undergoing a significant evolution, especially over the past few months, characterized by periods of price consolidation followed by bursts of increased activity. The term ‘accumulation’ refers to a phase during which buyers and sellers establish a price range before a major movement occurs. Recent developments, particularly the increasing activity among Bitcoin whales—investors holding substantial amounts of BTC—and the SEC’s decision to greenlight Bitcoin ETF options signal a shifting landscape that may propel Bitcoin prices upward. Understanding these dynamics is crucial for grasping the current momentum of Bitcoin in the financial markets and its potential trajectory moving forward.

In conclusion, the recent breakout of Bitcoin’s price following an extended accumulation phase is attributed to a surge in whale activity and the SEC’s approval of Bitcoin ETF options. As Bitcoin approaches new price milestones, the market remains poised for further movements that could either solidify gains or invite corrective actions. The response from larger holders and regulatory developments will be crucial in determining Bitcoin’s next steps toward potentially reaching new all-time highs.

Original Source: coingape.com