bitcoin (btc) is currently witnessing a price recovery after a brief drop earlier in the week. Despite these fluctuations, a CryptoQuant analyst under the pseudonym BaroVirtual has shared some encouraging long-term results. perspectives regarding whale activity.
According to the analyst, whales (large bitcoin holders) now control approximately 670,000 btc, the highest amount ever recorded. This phase of accumulation by whales is considered a positive sign for bitcoin's long-term prospects.
The whale continues to accumulate
BaroVirtual emphasized that when whale holdings reach such high levels, bitcoin tends to remain in a sideways trading pattern or experience slight price declines. However, this accumulation phase often serves as a precursor to a significant upward movement in the value of the cryptocurrency.
<img src="https://technicalterrence.com/wp-content/uploads/2024/10/Bitcoin-Price-Rebounds-Above-67000-as-Whales-Continue-to-Accumulate.png" alt="bitcoin whale holdings” />
The analyst described this phase as the “calm before the storm,” suggesting that a major price rally could be on the horizon as whales gradually reduce their holdings. Historically, this pattern has led to long-term price increases for bitcoin.
BaroVirtual also warned of potential risks related to the upcoming US presidential election, noting that if bitcoin fails to refresh its all-time high between the election and the end of November, it could indicate deeper problems within the current bull cycle. The post on the CryptoQuant QuickTake platform said:
Finally, if the all-time price high between the US presidential election and November 28 is not updated (+/- 21 days), this will indicate serious problems with the current bull cycle and things will get ugly.
bitcoin Market Performance and Outlook
Parallel to these developments, bitcoin has seen a rebound in price following a recent drop that followed its attempt to break through the $70,000 level on Monday. After the correction, bitcoin is currently trading at $67,658, up 2.4% over the past day.
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This price recovery aligns with technical signals indicating a possible continuation of the bull market. A well-known crypto analyst known as CryptoBullet recently noted on x that bitcoin's weekly Moving Average Convergence and Divergence (MACD) indicator has crossed into bullish territory for the first time since October 2023.
CryptoBullet highlighted that this setup is reminiscent of bitcoin's price action in 2021, which saw a similar vertical rally followed by a medium-term correction. However, unlike the deeper correction in 2021, the current phase has taken longer to develop but has not been as severe.
The analyst remains optimistic and predicts that bitcoin will likely break out of its multi-month consolidation phase, leading to a new all-time high in price.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#bitcoin Weekly MACD crossed bullish for the first time since October 2023!
But this picture reminds me a lot of 2021: the same vertical rally (MACD peaked) followed by a painful mid-term correction (however, it's not as deep this time, it just took longer).
Now twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” target=”_blank”>$btc is… pic.twitter.com/q03dN7GgS6
— CriptoBullet (@CryptoBullet1) twitter.com/CryptoBullet1/status/1849043259604996374?ref_src=twsrc%5Etfw” target=”_blank”>October 23, 2024
Featured image created with DALL-E, TradingView chart
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