The price of the leading cryptocurrency Bitcoin [BTC] continues consolidating within a lower trading price ranges without offering a transparent path for where it’s headed towards. Despite the price volatility around it, different on-chain metrics suggest that enormous investors are choosing to shop for Bitcoin evermore increasing their positions.
Bitcoin Whales Utilizing This Price Dip For Accumulation
After failing to earlier $12k resistance level into support, the leading cryptocurrency went through a steep correction that happened at the starting of the month. Bitcoin dropped by nearly 19% from a high of around $12,080 USD to a present price of around $9,750 USD. The downward price action caused a state of accumulation among market participants, while large investors took advantage of it to feature more tokens to their holdings.
Santiment’s holder distribution chart reveals that as prices plummeted, the number of addresses with billions of dollars in Bitcoin, known within the cryptocurrency ecosystem as “whales,” was increasing exponentially. The trading psychological analytics firm recorded a 6.74% spike within the number of addresses holding 10k to 100k BTC. Around 7 new whales joined the network over the past 2-weeks.
Such an upswing within the number of BTC whales could seem insignificant initially glimpse. But when considering these large investors hold between $108 Mln & $1.08 Bln in BTC, the upturn can translate into billions of dollars worth of purchase orders.
If the purchasing spree by these whales continues, Bitcoin may have the power to regain a number of the lost ground throughout September and eventually move past the $12k benchmark.
Bitcoin, Technical Support & Market Prediction
The bullish thesis holds when watching BTC’s 3-Day chart. Within this time period, the pioneer cryptocurrency seems to be trading on top of a critical support barrier. Based on the historical data, the 50-day moving average has been ready to contain falling prices cornered during the market of 2010-2011, 2012-2014, as well as 2015-2018.
If the past repeats itself again, Bitcoin could also be close to resuming the uptrend following the recent rejection from this hurdle. But first, it might need to be close above mid-September’s high of $11,200 USD and switch to the $12k new resistance into support. Once these barriers are covered, it’s reasonable to assume that BTC would likely aim at June 2019’s high of nearly $14k.
Moreover, It’s also worth noticing that a candlestick close below the 50-day moving average, that is presently hovering around $10k USD could jeopardize the bull-run outlook. If this happens again, the leading cryptocurrency may plummet towards the 100-day moving average.