Bitcoin has quickly bounced back above $67,000, rising by 3% after hitting a low of $65,200. Despite the recent drop, the metric tracking long-term Bitcoin accumulation sentiment has remained unchanged as BTC whales continue to hold significant amounts of the cryptocurrency.
A verified Bitcoin researcher on CryptoQuant, known as BaroVirtual, has highlighted that whale holdings have reached a new all-time high of around 670,000 BTC. The chart shows a growing trend in 2024, with whales surpassing their previous ATH holding level from 2020 in July.
In regards to the current increase in whale holdings, BaroVirtual believes it is a positive sign for the long term. They also mentioned that Bitcoin’s price tends to move sideways when whale holdings reach new peaks, but it creates more demand during a bull market. This suggests that Bitcoin’s price rises parabolically when whales gradually reduce their holdings and retail investors absorb the selling pressure from the market.
Earlier reports have indicated that Bitcoin whale accumulation is following a similar trend to 2020. Whale wallets on spot exchanges have accumulated over 1.5 million BTC in the past six months, matching the previous high from 2020.
In addition to the whale activity, Bitcoin has reclaimed the $67,000 mark as ETF inflows turned positive. On October 22, Bitcoin ETF flows experienced their first net negative in two weeks, with $79.1 million outflows after a 3% drop in BTC prices the day before. However, on October 23, ETF inflows surged to $192.4 million, indicating continued bullish sentiment from institutions despite short-term declines.
Moustache, an independent crypto analyst, has highlighted Bitcoin’s golden moment indicator, which has recently turned bullish. The analyst claims that this indicator has accurately predicted the start of a bullish trend four times in the past four years, making it a reliable tool.
From a technical standpoint, Bitcoin has successfully recovered above $67,000 after forming a V-pattern from the first order block or demand zone. The most bullish scenario for BTC is an immediate jump from $64,500, mirroring July’s ‘fractal’ pattern.
Currently, BTC’s price action is following the expected trajectory, but further confirmation of bullish sentiment will be achieved if there is a daily candle move above the overhead resistance at $67,800.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.