Current market price data shows renewed buying activity from large Bitcoin (BTC) holders, sparking talk of a potential rally. According to the market outlook, whales are now buying around three times more Bitcoin than what is being mined daily.
Notably, with the Bitcoin price hovering near key price levels, this behaviour has fueled expectations that the coin could break out to the $100,000 mark.
Bitcoin Price Boasts Bullish Outlook As BTC Whale Accumulation Grows
According to Glassnode’s data, Bitcoin large investors, those holding between 100 and 1,000 BTC, are accumulating at an aggressive pace. They are currently absorbing over 300% of Bitcoin’s annual supply issuance.
It is worth noting that this aggressive buying behavior comes as the top crypto exchanges experience consistent outflows. This suggests that more BTC whales and shark holders are choosing long-term storage over quick trades.
Notably, this trend of moving Bitcoin away from exchanges signals growing confidence in the asset’s long-term value. Many of these large holders have continued to buy during periods of Bitcoin price correction.
Based on market observations, whales treat the dip as an opportunity to accumulate rather than a reason to exit. Onchain analyst Mignolet mentioned that this current behaviour shows a similar pattern to that of Bitcoin’s 2020 bull run.
Market data also shows that Bitcoin is testing its 50-day and 200-day exponential moving averages as resistance. In an earlier BTC price analysis, CoinGape noted that these levels are around $85,500.
If the price fails to break above these points, it could face a pullback. If the top coin loses this level, the next key level to watch is the upper trendline of the wedge pattern, which is near $80,000.
BTC Price Consolidation Teases Breakout
The Bitcoin price has been in correction for almost three months since the beginning of the year, when BTC topped $100,000. Since then, it has dropped by just over 25%. Analysts from Bitfinex pointed out that this drop fits the usual pattern seen in past bull markets. Mid-cycle corrections of 25% to 35% often occur before the price increases.
Despite the correction, activity in the spot market has remained strong. The Spot Cumulative Volume Delta (CVD) has been rising steadily, showing buyers are still active.
The price has remained in a narrow range between $75,000 and $85,000. This calm period, along with strong buying activity, could suggest accumulation taking place behind the scenes. In the past, this has often led to sudden and powerful price breakouts.
Aside from the price outlook, a rumor suggests that China is dumping BTC in its reserves. Analysts predict this could cause Bitcoin’s price to drop to $40,000.
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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