Bitcoin Whales Intensify Accumulation Rate amid Ongoing Crypto Cash Rotation to Altcoins

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As an experienced analyst, I believe that Bitcoin’s price stagnation in recent weeks is a temporary setback and not a sign of a bearish trend. The accumulation of Bitcoin whales and institutional investors’ continued interest suggest a strong underlying demand for the flagship cryptocurrency.

As an analyst, I’ve observed that Bitcoin (BTC) ended the previous week with a closing price roughly at $68,500, marking a 3.3% increase in its value over the past seven days. However, it was Ethereum (ETH) and meme coins like Pepe (PEPE), Floki Inu (FLOKI), and CorgiAI (CORGIAI) that gained more attention from investors during this period. In spite of Bitcoin’s price rebound in the past fortnight, efforts by buyers to push beyond the significant resistance level of approximately $72,000 have been unsuccessful.

Additionally, the RSI of Bitcoin’s weekly price has failed to surpass the 70 mark, which is commonly considered a bullish signal. Based on technical analysis, it’s possible that Bitcoin could enter a period of sideways movement in the next few months before experiencing a significant surge towards another record high.

Bitcoin Whales Unwavering

Last week, according to Coinspeaker’s report, US-based Bitcoin spot ETFs experienced inflows of cash for over a week, following a brief spell of profit-taking. In simpler terms, large investors have been pouring money into these ETFs in anticipation of a potential new Bitcoin price surge.

Based on data from CryptoQuant’s on-chain analysis, Bitcoin large investors (whales) have been actively purchasing large amounts of the cryptocurrency over the past year.

#Bitcoin whales have been buying like never before 👀

— Vivek⚡️ (@Vivek4real_) May 26, 2024

It’s important to mention that the 30-day moving average of Bitcoin’s funding rate has remained positive, with the current level hovering around 0.006. This year’s peak was reached at approximately 0.03. The decrease in Bitcoin supply on centralized exchanges is a clear indication that an increasing number of long-term investors are drawn to digital gold.

Additionally, the persistently high fiat inflation and continuous global political tensions have created favorable conditions for the increasing use of digital assets. Notably, the forthcoming US elections in November are being referred to as the first significant elections in the history of cryptocurrencies.

During the past weekend, Republican presidential hopeful Donald Trump announced his intentions to wholeheartedly support cryptocurrencies should he be elected, as well as grant freedom to Ross Ulbricht, the founder of Silk Road, if possible. Furthermore, Trump vowed to prevent the Federal Reserve from introducing a Central Bank Digital Currency (CBDC), earning him favor among the over 50 million crypto-enthusiast voters in the U.S.

What Next

The price of Bitcoin is predicted to persist in a consolidation phase as the altcoin market exhibits increasing bullish energy. Technically speaking, Bitcoin’s price will likely oscillate between $72,000 and $61,000 until there is a consistent close above or below this range. If Bitcoin experiences a bullish surge, well-known crypto analyst MikyBull Crypto anticipates the price could climb up to $78,000.

#Bitcoin obviously is taking a retest, as I pointed out, as the next rally’s probability.

I’m punting a long trade from the 4hr chart fvg the possible area for a bounce.

— Mikybull 🐂Crypto (@MikybullCrypto) May 26, 2024

Over the last ten days, Bitcoin’s market dominance has decreased by 4 percentage points, indicating a growing trend towards alternative cryptocurrencies. Furthermore, the Ethereum-to-Bitcoin pair has surged over 27 percent during this period. The recent approval of a spot Ether Exchange Traded Fund (ETF) could be the catalyst for an anticipated altcoin season in the near future.

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2024-05-27 12:43