Bitcoin Price Rises as Whales Increase Influence
Bitcoin traded at $68,865 on Sunday, showing a slight increase of 0.8% in a low volatility market. The neutral candlestick formation suggests that buyers are regaining momentum after a powerful rally last week. As large crypto investors, known as whales, strengthen their control, the BTC price has broken out of a seven-month consolidation trend.
Whales Boost Bitcoin Price
Data from Santiment reveals that the recent recovery in Bitcoin’s price is supported by increased activity from whales. After Bitcoin’s correction to around $60,000 on October 10, the number of wallets holding between 100 and 1,000 BTC has risen by 268. This surge in the number of large holders is seen as a bullish sign, bringing back a sense of optimism in the crypto market.
SEC Approves Bitcoin ETF
Another important factor contributing to the recovery of Bitcoin’s price is the approval of Bitcoin ETF options by the SEC for listing on the New York Stock Exchange. This new crypto-based product is expected to provide the liquidity needed to attract sustainable initiatives for the Bitcoin ETF.
Bitcoin Breaks Consolidation Trend
For the past seven months, Bitcoin’s price has remained stagnant, fluctuating within two downward trend lines of a bullish flag formation. This pattern emerged after a strong rally, allowing buyers to regain momentum during a temporary counter-trend movement.
In October, Bitcoin’s price saw a significant reversal from $60,000 to $68,823, indicating a rise of over 14%. This increase confirms the sustainability of prices above key moving averages, creating a favorable environment for recovery.
The recent price surge on Friday marked a decisive breakout from the upper trend line, signaling an end to the seven-month consolidation period. If this breakout continues, buyers could trigger a rally of 22%, pushing the price to a peak of $82,000.
However, if the Bitcoin price falls back into the consolidation range, sellers might regain control and initiate a new corrective trend.
Volatility Reflects Market Dynamics
The volatility in Bitcoin’s price demonstrates the dynamics of the market and the influence of large investors. The growing role of whales and the SEC’s approval of the ETF contribute to Bitcoin’s potential upward trajectory while making the market more sensitive to fluctuations.
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Disclaimer: This article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
