As a seasoned crypto investor with several years of experience under my belt, I’m always keeping a close eye on market trends and price movements. The recent surge in Bitcoin’s price, with a 10 percent pump in just a week, has caught my attention once again. With resistance levels being retested around $67K, it’s an exciting time for investors like me.
As an analyst, I’ve observed that Bitcoin (BTC) experienced a significant surge of more than 10% over the last week, pushing it back up to test the resistance level around $67,000. This resistance level marks a potential hurdle for further price increases. The bullish flag pattern has been forming in Bitcoin’s price chart, indicating a strong possibility of reaching towards $69,000 before revisiting the all-time high (ATH) above $73,000. It is noteworthy that Bitcoin has consistently closed its daily sessions above the 50 Moving Average (MA) for the past six days. This closure suggests that the bulls are currently dominating the market trend.
As a crypto investor, I’ve noticed that the leading coin has dominated the altcoin market with a correction trend for the past two months. It’s been over a month since the fourth Bitcoin halving event, and the altcoin sector is still losing ground to Bitcoin, as evidenced by the declining Ethereum-to-Bitcoin ratio.
Bitcoin Whales Aggressively Accumulate
As a researcher examining the latest trends in the Bitcoin market, I’ve discovered some intriguing insights based on data from market intelligence platform Santiment. According to their information, Bitcoin whales have been buying up during the recent sell-off initiated by short-term holders. This is evident from the decrease of over 182,000 small Bitcoin wallets in the past week. On a positive note, both Hong Kong and US-based spot Bitcoin Exchange Traded Funds (ETFs) reported substantial cash inflows last week.
Last week, Bitcoin exchange-traded funds (ETFs) based in Hong Kong attracted approximately $244 million, increasing their total net assets. In contrast, US-based Bitcoin spot ETFs purchased over 14,000 Bitcoins. Notably, Bitcoin miners produced roughly 520 new units last month, implying strong institutional investor demand.
Based on blockchain information, a solitary investor has recently acquired over 16,445 Bitcoins, valued at approximately $1.1 billion, within the last 24 hours. Another notable Bitcoin buyer was identified, having amassed around $106 million worth of the cryptocurrency during the same time frame.
During the present period, large whale transactions involving over 1,000 Bitcoins have shown the least exchange selling activity. On average, they’ve sold approximately 641 Bitcoins in the last 30 days.
Whales are unwilling to sell their coins as they anticipate a rise in value.
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) May 20, 2024
Key Targets for BTC Price Ahead
The price of Bitcoin bounced back significantly from its recent correction and was trading near $67,000 during the London session on Monday. This rebound comes as Bitcoin displays a reversal pattern, indicated by an inverted head and shoulders (H&S) formation. If Bitcoin manages to close above $67,000 in the coming days, it is likely that we will witness a rally towards a new peak of approximately $74,747 – a level supported by the daily 1.618 Fibonacci Extension.
On the weekly chart, Bitcoin’s price formed its first green candlestick in the past two months. This occurrence indicates a potential continuation of the upward trend. Additionally, the weekly Relative Strength Index (RSI) has been attempting to surpass the 70 threshold, which is often seen as a bullish sign.
As a researcher observing the cryptocurrency market, I’ve noticed an intriguing development regarding Bitcoin’s position of dominance. On a weekly basis, Bitcoin has been exhibiting signs of a reversal pattern, which is typically indicative of an imminent shift in investor attention towards altcoins. Additionally, while Bitcoin’s dominance has persistently trended upward on the weekly chart, the Relative Strength Index (RSI) has displayed a bearish divergence during this period. This discrepancy between the price action and the RSI suggests that Bitcoin may be approaching an overbought condition, potentially leading to a pullback or correction in its price, thereby paving the way for altcoins to gain traction.
In the upcoming months, it would be wise for cryptocurrency traders to explore opportunities in the altcoin market, as its potential growth may surpass that of Bitcoin, currently boasting a market capitalization of over $1.3 billion.
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2024-05-20 12:42