• Sat. Oct 5th, 2024

Bitcoin Hits $65K as Whales Buy $4B: Is $70K Next for Uptober?

Xavier Jackson

ByXavier Jackson

Sep 26, 2024
Bitcoin Hits $65K as Whales Buy $4B: Is $70K Next for Uptober?

Key Insights:

  • Whale accumulation of $4.08B in Bitcoin has provided market stability, driving BTC back to $65,000 since August.
  • Technical indicators suggest upward momentum as Bitcoin nears key resistance, supported by RSI and MACD showing bullish signals.
  • Bitcoin ETFs see strong inflows, boosting investor confidence with expectations of BTC revisiting $70,000 amid “Uptober” optimism.

Bitcoin has returned to the $65,000 level for the first time since August, reflecting renewed buying interest from large holders, often referred to as whales and sharks. Data from market intelligence platform Santiment shows that wallets holding 10 or more BTC have accumulated a total of $4.08 billion worth of Bitcoin in the last six months. This consistent buying activity has helped support Bitcoin’s price, preventing sustained drops and setting the stage for the current market recovery.

Santiment notes that this whale and shark accumulation has played a crucial role in Bitcoin’s resilience. By consistently acquiring large amounts of BTC, these major market players have provided a solid floor of support, contributing to price stability even amid market volatility. The continued confidence from these large holders signals a bullish sentiment that has been instrumental in Bitcoin’s return to the $65,000 mark.

Technical Indicators Suggest Upward Momentum

Recent technical analysis on Bitcoin’s 4-hour chart shows the cryptocurrency trading near the upper Bollinger Band, indicating a period of upward momentum. The price has been pushing against resistance around $63,985.88, with the Bollinger Bands widening slightly, which suggests increasing volatility and the possibility of further price gains. The 20-period Simple Moving Average (SMA) is acting as dynamic support, which helps maintain the current bullish trajectory.

Source: TradingView

The Relative Strength Index (RSI) currently stands at 58.52, reflecting a neutral to mildly bullish outlook as it remains below the overbought level. This positioning indicates that there is still room for additional upward movement without immediate correction risks. 

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover, with the MACD line above the signal line and green histogram bars growing. This indicates that buying pressure is present, although momentum remains moderate, suggesting caution for potential pullbacks.

Market Performance and Upcoming Economic Events

The overall market cap of Bitcoin is approximately $1.27 trillion, with a circulating supply of 20 million BTC. These gains reflect the overall bullish sentiment and expectations of further price increases as Bitcoin heads into October.

The broader market is closely watching Federal Reserve Chair Jerome Powell’s upcoming speech, which is expected to provide key insights into the U.S. economic outlook. The market anticipates that any indications of continued economic support or dovish monetary policy could further bolster Bitcoin’s price. A positive market reaction could help Bitcoin maintain its upward trajectory, while any signs of tightening could lead to increased volatility in the near term.

ETFs and Institutional Interest Boost Market Confidence

The introduction of Bitcoin-based ETFs in the U.S. has played a pivotal role in driving institutional interest this year. With the approval of the first crypto-based ETF in January 2024, Bitcoin quickly surged to an all-time high of $73,000 in March. Despite periods of volatility, such as the pullback during the summer months, Bitcoin has shown resilience, and investor confidence remains strong.

Recent data from SoSoValue indicates that daily net inflows into Bitcoin ETFs have exceeded $100 million for two consecutive days, marking a five-day streak of positive inflows. This renewed institutional interest is seen as a key factor supporting Bitcoin’s price and attracting more investors. The steady inflows suggest that investment products related to Bitcoin are gaining traction, further supporting the market during this crucial period.

As Bitcoin heads into October, commonly referred to as “Uptober” due to historical bullish trends during this month, market participants are hopeful that the positive momentum will continue. Analysts suggest that Bitcoin could revisit the $70,000 level reached earlier in the year, with some forecasting the possibility of new record highs if current trends persist.

Xavier Jackson

Xavier Jackson

Xavier Jackson is a talented and versatile news writer with a knack for delivering compelling stories. With a dedication to accurate reporting and a captivating writing style, his articles provide readers with insightful and thought-provoking perspectives on current events.

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