Bitcoin Whales Accumulate During Price Dip, Supporting Bullish Outlook
Bitcoin’s recent price action has seen it nearly reach $69,000, marking a local high and reinforcing the ongoing uptrend that began in September. A key development driving optimism is the increase in Bitcoin whale activity, indicating a potential bullish trend in the coming weeks.
Whale Accumulation at $59,000
Data from Santiment shows that large holders of Bitcoin, commonly referred to as whales, began accumulating BTC as the price bottomed at $59,000 on October 10th. This accumulation period saw an increase of +268 wallets holding between 100 and 1,000 BTC. Historically, such whale behavior is seen as a strong bullish signal, reflecting "smart money" preparing for a significant market move.
Key Resistance at $70,000
Despite Bitcoin trading near $70,000, a critical resistance zone, whale accumulation suggests this barrier may weaken soon. Bitcoin has faced resistance at this level five times in the past seven months, leading to caution among investors. However, with whales increasing their holdings, there is optimism that this level could soon be surpassed.
Testing Supply Levels
Bitcoin is now trading around $68,383, inching closer to a potential breakthrough. Analysts are monitoring the 200-day moving average, currently at $63,322, as a key support level in case of a retrace. If Bitcoin holds above this, it could signal renewed strength and set the stage for a push beyond the $70,000 resistance.
In summary, whale accumulation and strong momentum suggest that Bitcoin could be primed for further gains, although short-term retraces may still occur. The next few weeks will be critical in determining whether Bitcoin can break its $70,000 resistance and reach new highs.
