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Bitcoin reached nearly $69,000 yesterday, setting a new local high and consolidating an ongoing uptrend that began in September. This price movement has fueled optimism among analysts and investors, who are now anticipating big gains in the coming weeks.
Investors believe Bitcoin is ready for a strong rally after seven months of sideways accumulation.
Important data from Santiment reveals that the number of Bitcoin whales – large holders of BTC – increased dramatically just as the price reached the low of $59,000 on October 10.
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This increase in whale activity is often seen as a sign that the “smart money” is positioning itself for a big move. Major investors accumulating Bitcoin during the lows indicate that they are preparing for something big in the coming weeks.
As excitement builds, market participants are watching closely for further signs that Bitcoin may be heading towards all-time highs. With momentum on its side, Bitcoin appears poised to lead the market into the next phase of this cycle.
Bitcoin whale activity supports bullish outlook
Bitcoin is trading near the historical interactive price level of $70,000. A critical zone that has consistently acted as resistance, pushing the price down five times over the past seven months. Every time Bitcoin approaches this level, it triggers sell-offs or corrections, leading to caution among traders and investors.
but, Latest data from Santiment It reveals that this resistance may be weakening due to increased whale activity. Between October 10 and 13, there were a net increase of +268 wallets holding between 100 and 1,000 BTC, indicating that large players are accumulating BTC as prices rise.
Analysts often view the increase in whale portfolios as a strong bullish indicator, indicating that impact investors are bracing for a potential uptrend in the coming months.
The timing of this buildup is crucial, as it coincides with Bitcoin’s bullish momentum, suggesting that these big players are anticipating further gains. As more large holders continue to enter the market, the window to purchase Bitcoin at a reasonable price is narrowing.
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This accumulation indicates that whales are betting on a continued rally, which could weaken the $70,000 resistance level and allow Bitcoin to rise.
With Bitcoin trading near this critical price zone, the next few weeks could be crucial, either breaking the $70,000 level or facing another correction.
BTC is testing supply levels
Bitcoin is trading at $68,383 after several days of sustained gains, and is steadily pushing towards new supply levels. The price recently stopped at $68,998 and now looks set to challenge new all-time highs.
The rise has created a wave of optimism, but analysts warn that a healthy decline may be on the horizon.
The 200-day moving average (MA), currently sitting at $63,322, is a key level to watch. If Bitcoin pulls back to this support area, it could indicate a renewed push higher, as this level has historically served as strong support during bullish trends. Staying above the 200-day moving average is crucial to maintaining bullish momentum.
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If Bitcoin fails to break the $70,000 resistance level next week, a rebound of lower demand is expected. This pullback will allow the market to regain liquidity and reset to a potential new high.
Investors are watching closely as the price action in the next few days will determine Bitcoin’s long-term outlook.
Featured image by Dall-E, chart from TradingView