Bitcoin (BTC) Price Regains Crucial Support Level amid Rising Demand from Whale Investors

As a seasoned researcher with over two decades of experience in financial markets, I have seen my fair share of market cycles and trends. The current state of Bitcoin (BTC) is particularly intriguing, given its recent break above the 200-day moving average, a significant technical indicator.


Yesterday, I witnessed an interesting development as Bitcoin (BTC) closed above its 200-day Moving Average (MA) for the first time this September. This came after a surge towards a high of approximately $64,755 before a brief dip below $63,000 during the mid-London session on Wednesday.

In simpler terms, if the value of Bitcoin (BTC) remains consistently above $64,000 in the upcoming weeks, we might be heading towards a bull run in the last quarter of the year, potentially reaching a new record high. Conversely, if Bitcoin finds it difficult to surpass the resistance level at $64,000, there could be another dip in its weekly trend in the near future.

Furthermore, the price of Bitcoin has been stuck in a downward trend over the past six months following its peak at approximately $73,700. However, optimism surrounding Bitcoin is running high in the immediate future, as past trends suggest that the fourth quarter often sees positive movement for Bitcoin.

As an analyst, I’m observing a surge in optimism surrounding Bitcoin. This buoyancy stems from the persistent upward trend in gold prices and the ascending trajectory of significant stock market indices.

Bitcoin Whales on the Move

In the last while, a significant drop in concern about more cryptocurrency market collapse has been observed. This is indicated by the surge in Bitcoin’s Fear & Greed Index to 59%. Meanwhile, data from blockchain analysis reveals an increase in the interest of long-term investors.

Whales are accumulating $BTC!
2 whales have withdrawn 3,463 $BTC($219M) from #Binance in the past 12 hours!
Cryptocurrency wallet address: a string of characters starting with “bc1q” and ending with “NM9fV8dSSQgbWDZSBVgqtPw4DaAXS”, also containing the substring “57rcscs6ztj0xnslwkt4nervxkpen07h9h2jnr2hkwlg3lwuljrsdwt2m212993”.
— Lookonchain (@lookonchain) September 24, 2024

Based on recent analysis of blockchain data, it’s been observed that three significant Bitcoin investors have taken out approximately $300 million worth of Bitcoin from Binance within the last day. Furthermore, over the past month, more than 97,000 Bitcoins have been withdrawn from various centralized exchanges, indicating a steady decrease in their supply.

The rising demand for Bitcoin among whale investors is also visible through the spot BTC ETFs cash flow.

Over the past three weeks, U.S. Bitcoin Exchange-Traded Funds (ETFs) have collectively received approximately $1 billion in investments. On Tuesday, BlackRock’s IBIT fund was the top gainer among these ETFs, taking in around $98.89 million, which increased its holdings of Bitcoin to roughly $22.96 billion.

The growing interest in Bitcoin from countries like El Salvador and Bhutan is likely to encourage additional institutional investors, including MicroStrategy Inc (NASDAQ: MSTR), to adopt a long-term strategy of gradually acquiring more Bitcoin.

Market Picture

In the face of mounting geopolitical conflicts in the Middle East and between Russia and NATO, the worldwide economic transition is intensifying. Gold prices have already hit a record high of approximately $2,655 per ounce, suggesting a need for protection against inflation and global uncertainties.

Currently, key world economies like the U.S., EU, Canada, and China are taking action by lowering their interest rates. The goal is to boost economic expansion over the short term.

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2024-09-25 12:18