Bitcoin has been moving sideways, forming a bull flag pattern on the daily chart. Despite recent stability, with prices recovering from yesterday’s dip, BTC remains down 8% from last week’s peak and is in a delicate state.
For Bitcoin to gain traction in the short term, a move above $63,000 is crucial. Such a breakout could indicate that buyers have regained momentum, potentially setting the stage for a rise toward $70,000 as part of a continued upward trend.
Whale Activity and Market Patience
While the market sentiment is bullish, an analyst on X suggests that patience may be necessary. According to on-chain data, the Bitcoin whale ratio is currently at “extremely high” levels. This metric, which compares the volume of large whale transactions to overall market activity, signals increased involvement from whales, primarily institutional investors and wealthy individuals.
This rising whale ratio suggests that Bitcoin is likely in an accumulation phase, with whales buying during price dips to increase their holdings. Historically, such accumulation phases often precede price spikes, particularly in the months following a Bitcoin Halving event.
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Bitcoin’s most recent Halving on April 20 reduced miner rewards, making the coin deflationary. This, combined with growing institutional interest through spot Bitcoin ETFs, is expected to positively influence prices in the near future.
For a bullish outlook to solidify, Bitcoin needs to break and close above $63,000, and surpass the July highs to target $70,000 and $72,000.
Recent developments also hint at potential upward momentum. Increased inflows of stablecoins to major exchanges like Binance and Coinbase suggest that traders are preparing to increase their crypto investments. This influx of stablecoins could enhance Bitcoin’s purchasing power, providing a positive signal for Bitcoin and other digital assets.
Cre: bitcoinist
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
Email: [email protected]
