Anika Begay
Bitcoin is moving sideways in a consolidation, forming a bullish flag that is clear on the daily chart. While prices are holding steady at the time of writing, shaking off yesterday’s weakness, BTC is down 8% from last week’s highs and remains in a fragile position.
Technically, what Bitcoin needs, at least in the short term, is for prices to skyrocket above $63,000. When that happens, it could indicate that buyers have enough momentum to confirm the gains from August 8. The development could set the ball rolling for another leg towards $70,000 in a buying trend continuation formation.
Bitcoin Whales Pile Up, Traders Need to Be Patient
As bullish as market participants are, one X analyst thinks they may have to wait a little longer. Citing on-chain data, the analyst he said Bitcoin whale ratio is at “extremely high” levels.
This metric, used by chartists to measure the number of large whale transactions relative to overall activity, helps gauge the level of engagement of whales, mostly institutions and deep-pocketed addresses, at any given price point.
The rising whale rate indicates that Bitcoin is likely in an accumulation phase. Here, these Whales are keen to stockpile during declines, taking advantage THE low prices to increase their coin holdings.
Historically, the analyst said, prices tend to soar whenever this happens, especially when the coin is weeks or months away from halving.
On April 20, Bitcoin cut its miner rewards in half. The decline in issuance, which has made the coin deflationary, combined with growing demand from institutional players gaining exposure via spot Bitcoin ETFs, should have a positive impact on prices in the coming days.
Stablecoins flock to exchanges, breaking $72,000 will be crucial for bulls
Looking at the events on the daily chart, it is clear that sellers have the upper hand, at least from a top-down preview. There has been no complete reversal of the losses from late July-early August.
A break above $63,000 will be positive. However, a clear close above the July highs is needed to push the coin above $70,000 and $72,000.
Nonetheless, there are positive developments that could trigger and relaunch demand. The analyst, citing trading data, also said he said There has been an influx of stablecoins on major exchanges like Binance and Coinbase.
If history is any guide, it means traders are increasing their cryptocurrency purchasing power and are eager to double down. Overall, this is a net positive for Bitcoin and other digital assets.
Feature image from Canva, chart from TradingView
