As a seasoned crypto investor with a few battle scars from past market volatility, I must admit that the recent Bitcoin price action has been a rollercoaster ride. The brief flirtation with $58K was a tantalizing tease, only to be followed by a dip to $56,691. However, the consistent closing above the crucial support level of around $56k in the last three days has been a breath of fresh air and a relief for many investors like myself.
In the recent 24 hours, Bitcoin‘s price momentarily peaked around $58,000 but later dipped to $56,691 during the mid-London session on Wednesday. The leading cryptocurrency showed increased volatility earlier today due to the first US presidential debate between Donald Trump and Kamala Harris being factored into the market. Its current 24-hour volume is approximately $27.88 billion, while its total market capitalization stands at a staggering $1.12 trillion. The symbol for Bitcoin is BTC.
Over the past three days, Bitcoin’s price consistently surpassing the critical $56k support level has reduced concerns of additional crypto market collapse significantly. The Fear & Greed Index for Bitcoin rose to approximately 37%, up from 23% three days prior, indicating a shift from extreme fear to less intense fear.
Bitcoin Whales Accelerates Accumulation Pace
Based on an analysis of blockchain data, approximately 236,155 Bitcoins with a total value of about $14.2 billion have been taken out from various cryptocurrency exchanges. Large-scale investors, often referred to as “whales,” have been purchasing these Bitcoins, helping to reduce the increasing selling pressure coming from short-term traders who are leaving the market. In response to the recent surge in Bitcoin’s price, short-term Bitcoin holders have sold off over 14,800 Bitcoins, worth around $850 million.
Over the past few days, there’s been a significant rise in the supply of stablecoins on crypto exchanges, which likely represents increased buying interest from institutional investors. Additionally, U.S. Bitcoin spot ETFs have recorded two consecutive days of net cash inflows following a period of decline over the last two weeks.
On Tuesday, there was approximately $116 million in total cash flow into U.S. Bitcoin Exchange-Traded Funds (ETFs), primarily driven by Fidelity’s Bitcoin ETF (FBTC) and the Grayscale Bitcoin Mini Trust (BTC).
Over the last day, information from blockchain reveals that a number of large-scale investors (whales) have withdrawn substantial amounts of cryptocurrencies from various platforms like Kraken and Binance.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 3,009 #BTC (174,052,861 USD) transferred from #Kraken to unknown wallet
— Whale Alert (@whale_alert) September 10, 2024
Market Picture
Everyone in the Bitcoin market and the broader altcoin industry is eagerly anticipating the release of today’s Consumer Price Index (CPI) figures by the Bureau of Labor Statistics. This data will offer valuable insights that could influence the Federal Reserve’s perspective on the economic situation, which they are expected to announce next week.
It’s quite probable that the Federal Reserve will lower its interest rates in the coming week, given that both the Bank of Canada and the European Central Bank have already reduced their own rates.
As global liquidity grows, many anticipate that the forthcoming U.S. general election will ignite a new period of market growth and optimism.
What Next
Looking at its technical structure, Bitcoin’s price has been shaping a bullish pennant during the overall correction since early March. This formation could potentially lead to a breakout by the end of Q4. Interestingly, Bitcoin’s performance historically seems stronger in the fourth quarter compared to the third quarter.
Analyzing historical peaks for #Bitcoin keeps me Bullish 🚀
— The Moon (@TheMoonCarl) September 11, 2024
If Bitcoin fails to maintain a closing price above $50K in the upcoming weeks, its bullish momentum could weaken, potentially leading the price to drop towards the $40K support zone.
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2024-09-11 13:00