Bitcoin is under pressure at press time, given the trends over the past two weeks. Despite the rally in September, the bulls started to go wrong in October, falling from around $66,000.
Although the coin is up at press time, rebounding from below $60,000 after the October 10 plunge, buyers need to prove they are in charge.
Bitcoin whales collect 1.5 million bitcoins in 6 months
While fundamental factors are closely monitored, on-chain data can show which direction the market could be headed. In a post on x, one of the analysts Notes Bitcoin whales can take advantage of lower prices to accumulate.
In the past six months alone, whales with at least 1,000 Bitcoins have acquired 1.5 million Bitcoins. As more coins flow to whales, it may indicate that they are optimistic about what lies ahead and are buying despite deteriorating market conditions.
Since March, when prices rose to $73,800, Bitcoin has been sliding, dampening lower declines and discouraging any attempts for fear of missing out among traders. Technically, the all-time high is a crucial resistance that buyers must clear, setting a new course for the world’s most valuable currency.
In the short to medium term, buyers should liquidate $66,000, $70,000, and most importantly $72,000. If the rally is on increased volume, Bitcoin could rise, in line with whale optimism and lifting the broader market.
High inflation and accommodative monetary policy could drive demand
There are multiple factors that may push the currency in the coming weeks. Recent market data shows that inflation is rising in the United States. Trading economics data shows that inflation rose To 2.4%, compared to the 2.3% expected over the past year, despite economists’ expectations. Riskier assets like Bitcoin tend to perform well in an inflationary environment.
Along with rising inflation, most central banks are cutting interest rates further. After cutting interest rates in September, the US Federal Reserve plans to cut funds rates further in the coming months and early 2025.
Other central banks, incl Those in the EU, the UK and other jurisdictions, such as China, have followed suit Reducing interest rates.
As the economy fills with cheap money, global liquidity rises, and more capital will be pumped into Bitcoin and other high-quality assets. Accordingly, there is a high probability that prices will be in line with the printed trend in the first quarter of 2024.
Featured image from Canva, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.