The cryptocurrency market showcases low volatility on the weekend as the BTC price tries to stabilize after the weekday rally. The renewed recovery can be attributed to a significant inflow into Spot Bitcoin ETFs and whale accumulation. Given the current bullish momentum, the Bitcoin price analysis suggests that buyers might soon bridge the 9.26% gap to an all-time high of $73,750. Is it still a good time to invest?
Bitcoin Price Analysis: Key Levels to Watch Amid Market Recovery
The Bitcoin price analysis in the past three weeks shows a V-shaped recovery in the daily time frame. This bullish turnaround has uplifted the asset from $53500 support to a week’s high of $67617, accounting for a 26.2% growth.
Amid the weekend consolidation, the BTC faced supply pressure at $67277 resistance and dipped 0.45% to trade at $66868. Consecutively, the market cap wavers at $1.319 Trillion.
If the bullish momentum persists, the Bitcoin price could jump another 5.6% before challenging the major resistance of the broadening wedge pattern. With diverging trendlines as dynamic support and resistance, this chart setup has guided Bitcoin in its past four-month consolidation.
A potential breakout from the overhead trendline will signal the continuation of the prevailing uptrend.
According to Lookonchain, a prominent on-chain data tracker, a whale has been on a buying spree, accumulating a substantial amount of Bitcoin in a short period.
The smart money bought 213.78 $BTC($14.48M) again 9 hours ago!
He has bought 677 $BTC($45.6M) in the past 4 days.https://t.co/dOPKLO9Irg pic.twitter.com/tZXJ6H6bBn
— Lookonchain (@lookonchain) July 21, 2024
Over the past four days, this smart money investor has purchased a total of 677 BTC, valued at approximately $45.6 million. The most recent transaction occurred just nine hours ago, with a purchase of 213.78 BTC worth $14.48 million. This pattern of large-scale acquisitions underscores the confidence of major investors in Bitcoin’s potential for a significant price surge.
Adding to the bullish outlook, Nate Geraci, president of The ETF Store, highlighted the significant role of the spot Bitcoin ETF in the United States. The ETF currently holds 900,000 Bitcoins, which accounts for 4.3% of the total Bitcoin supply. These assets are valued at approximately $60 billion.
Now *900,000+* bitcoin held by US-listed ETFs…
4.3% of total btc supply.
Approx $60bil in assets.
$17bil net new inflows since January launch.
via @apollosats pic.twitter.com/LaWt1PUOrI
— Nate Geraci (@NateGeraci) July 20, 2024
Since its launch in January, the ETF has seen a net inflow of $17 billion. This substantial inflow of funds indicates strong institutional interest and confidence in Bitcoin.
Thus, a breakout from the wedge pattern could accelerate buying momentum, extending the BTC price forecast target to $80,000, with potential further gains reaching $90,000.
Technical Indicator:
- Pivot Levels: The traditional pivot indicator hints that Bitcoin could witness overhead resistance at $77800 and $83782 in price discovery mode.
- ADX: The downsloping ADX slope hints the prevailing bearish trend is losing its momentum.
Related Articles
Frequently Asked Questions
A V-shaped recovery refers to a sharp and strong rebound in asset prices after a significant decline, forming a “V” shape on the chart.
A spot Bitcoin ETF (Exchange-Traded Fund) holds actual Bitcoin as its underlying asset, allowing investors to gain exposure to Bitcoin without owning the cryptocurrency directly.
Whale activity refers to the trading actions of individuals or entities that hold large amounts of Bitcoin. These large-scale investors, often called “whales,” can significantly influence the market due to the size of their transactions.