As a seasoned researcher with over two decades of experience in financial markets, I have seen my fair share of market fluctuations and trends. The recent surge in Bitcoin price to above $60,000 is an interesting development that warrants closer attention.
Bitcoin Price jumped 0.34% during the Sunday trading session, showcasing its sustainability above the $60000 psychological level. The bullish momentum is fueled by whale/institution accumulation and market anticipation of a 0.5% interest rate cut in the September FOMC meeting.
Will Whale Accumulation Drive Bitcoin Price to New ATH?
Based on information from Spotonchain, a significant investor or “whale” has been consistently purchasing Bitcoin since August 29th. As of now, this major investor has acquired roughly 3,933 Bitcoins (equivalent to approximately $234 Million) from the crypto exchange Binance. The most recent withdrawal was made today at a price of around $59,591 per Bitcoin.
At the moment, this whale is in possession of roughly 10,491 Bitcoins, which equates to around $630 million. Generally, significant transactions like these tend to inspire market confidence because they often lead to a price increase, as it’s believed that ‘whales’ or smart money are buying into the market.
Nevertheless, it’s reported that the same whale is said to have transferred 7,790 BTC, equivalent to approximately $467 million, into Binance on June 27 and July 8, 2024, at roughly $59,953 per Bitcoin. This action appears to have significantly influenced the price of Bitcoin, causing a steep drop of about 14%.
This giant whale keeps withdrawing $BTC from Binance as #Bitcoin broke $60K!
As an analyst, I’ve noticed that since August 29th, a significant amount of Bitcoin (3,933 BTC, equivalent to approximately $234 million at the time of withdrawal) has been withdrawn from Binance by what appears to be a whale. The most recent withdrawal was made just four hours ago, at an average price point of around $59,591 per Bitcoin.
Note that this accumulating wave came after the whale had…
— Spot On Chain (@spotonchain) September 15, 2024
To put it simply, the business intelligence firm Microstrategy has just boosted its Bitcoin reserves by buying an additional 18,300 Bitcoins, valued at approximately $1.11 billion. This recent acquisition means that the company now holds a total of 244,800 Bitcoins, as announced by Executive Chairman Michael Saylor.
It appears that the surge in Bitcoin’s price up to $60000 may be primarily influenced by both individual and institutional investments, as well as market speculation about a potential interest rate reduction in September.
There’s growing talk that the U.S. Federal Reserve might lower interest rates by half a percentage point in their next meeting, due to recent drops in Consumer Price Index (CPI) and Producer Price Index (PPI) inflation figures. As per the CME FedWatch Tool, there’s a 50% chance for a 0.5% rate reduction and an equal possibility of a 0.25% cut by the U.S. Federal Reserve.
Normally, lowering interest rates makes it simpler for banks to obtain funds for their business activities. This facilitates the movement of money within the market and stimulates higher investments in potentially risky assets such as cryptocurrencies.
BTC Price Poised For Major Breakout
The Bitcoin price at $60174 is just 1% away from a major breakout of the downsloping trendline. The dynamic resistance intact since late July drives the current correction trend, and a potential breakout will boost the bullish momentum.
If the recent resistance levels for Bitcoin are converted into possible future supports, the price might aim towards approximately $68,000, with a subsequent potential challenge at its all-time high resistance level near $73,777.
Contrarily, it’s worth noting that the Bitcoin price forecast indicates a significant barrier at around $65,800, since over 6.84 million wallets are holding roughly 3.1 million Bitcoins.
If the potential rebound encounters resistance from a supply overhang, traders might push Bitcoin into a prolonged period of consolidation, driven by selling activity.
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2024-09-15 17:56