Bitcoin (BTC) is currently seeing a price rebound after a brief decline earlier in the week. Despite these fluctuations, a CryptoQuant analyst under the pseudonym BaroVirtual shared some encouraging things about the long term. Visions Regarding whale activity.
According to the analyst, whales – the large owners of Bitcoin – now control approximately 670,000 Bitcoin, the highest amount ever recorded. This accumulation phase is seen by whales as a positive sign for Bitcoin’s long-term outlook.
Pisces continues to accumulate
BaroVirtual confirmed that when whale holdings reach such high levels, Bitcoin tends to remain in a sideways trading pattern or see minor price declines. However, this accumulation phase often serves as a precursor to a significant upward movement in the value of the cryptocurrency.
The analyst described this phase as “the calm before the storm,” noting that a significant price rise could be on the horizon as whales gradually reduce their holdings. This pattern has historically led to higher Bitcoin prices over the long term.
BaroVirtual also warned of potential risks associated with the upcoming US presidential election, noting that if Bitcoin fails to update its all-time high between the election and late November, it could indicate deeper issues within the current bull cycle. The post on the CryptoQuant QuickTake platform reads:
Finally, if the all-time high price level is not updated between the US presidential election and November 28 (+/- 21 days), this will indicate serious problems in the current bull cycle, and things will get ugly.
Bitcoin market performance and forecast
In parallel with these developments, Bitcoin witnessed a price recovery after the recent decline that followed its attempt to breach the $70,000 level on Monday. After the correction, Bitcoin is currently trading at $67,658, registering a 2.4% increase in the past day.
This price rebound is in line with technical signals indicating a possible continuation of the uptrend. A cryptocurrency analyst known as CryptoBullet recently noted on X that Bitcoin’s weekly Moving Average Convergence Divergence (MACD) indicator has crossed into bullish territory for the first time since October 2023.
CryptoBullet highlighted that this setup is reminiscent of Bitcoin’s 2021 price action, which saw a similar vertical rally followed by a mid-term correction. However, unlike the deeper correction of 2021, the current phase took longer to unfold but was not as severe.
The analyst remains optimistic, predicting that Bitcoin will likely emerge from a multi-month consolidation phase, leading to a new all-time high in price.
#Bitcoin The weekly MACD exceeded the uptrend for the first time since October 2023!
But this picture reminds me a lot of 2021: the same vertical rally (MACD peaked) followed by a painful mid-term correction (however, this time it was not as deep, but rather took more time).
now $ Bitcoin He is… pic.twitter.com/q03dN7GgS6
– CryptoBullet (@CryptoBullet1) October 23, 2024
Featured image created with DALL-E, chart from TradingView