Bitcoin whales have been steadily adding to their holdings, even during this week’s price dip. This strong accumulation trend suggests optimistic long-term expectations for the cryptocurrency.
Bitcoin Whale Holdings Reach New Highs
BaroVirtual, a respected Bitcoin researcher, revealed that whale holdings have reached a record high of approximately 670,000 BTC. This indicates a growing trend throughout 2024, surpassing the previous all-time high set in 2020.
Whale Accumulation Seen as Positive Long-Term Sign.
BaroVirtual interprets this accumulation phase as a potential calm before a significant price surge in the medium to long term. While whale holdings reaching new highs can sometimes lead to sideways price movements, it also signifies increased demand during bull markets.
Bitcoin Price Movements and Whale Holdings
Historically, parabolic price increases for Bitcoin have coincided with whales gradually reducing their holdings, allowing retail investors to absorb the selling pressure. This suggests that the current accumulation trend may precede a future price rally.
Similarities to 2020 Trend
As previously reported by Cointelegraph, the current whale accumulation pattern resembles the trend observed in 2020, which preceded a 550% surge in Bitcoin’s price.
Positive ETF Inflows Despite Short-Term Price Dip.
Bitcoin ETF flows experienced their first net negative inflow of $79.1 million in two weeks on October 22nd, following a 3% price drop for BTC. However, data shows a significant rebound with positive inflows of $192.4 million on October 23rd. This indicates continued institutional interest in Bitcoin despite short-term price fluctuations.
Technical Analysis Supports Bullish Outlook
From a technical standpoint, Bitcoin has displayed a swift recovery above $67,000, forming a V-shaped pattern after finding support at a key demand zone. This aligns with the most bullish scenario previously identified by Cointelegraph, which anticipated an immediate jump from $64,500.
Confirmation of Bullish Trend
While the current price action aligns with expectations, a daily candle closing above $67,800 would provide further confirmation of a bullish trend.