bitcoin is under pressure at the time of this publication, looking at the trends of the last two weeks. Despite the September rally, the bulls got off to a bad start in October, falling from around $66,000.
Although the coin is up at press time, bouncing from below $60,000 after the Oct. 10 slide, buyers must prove they are in charge.
bitcoin whales accumulate 1.5 million btc in 6 months
While fundamental factors are closely monitored, on-chain data can show where the market could be headed. In a post about x, an analyst x.com/AxelAdlerJr/status/1844374257465438669″ target=”_blank” rel=”noopener nofollow”>grades that bitcoin whales could be taking advantage of low prices to accumulate.
In the last six months alone, whales holding at least 1,000 btc have collectively acquired 1.5 million btc. As more coins flow to the whales, it could suggest that they are optimistic about what lies ahead and are buying despite deteriorating market conditions.
Since March, when prices rose as high as $73,800, bitcoin has been falling, hitting discouraging lows and dispersing any attempts for fear of losing ground among traders. Technically, the all-time high is crucial resistance for buyers to clear, marking a new trajectory for the world's most valuable currency.
In the short and medium term, buyers need to settle $66,000, $70,000 and, most importantly, $72,000. If volume expansion is the upside, bitcoin could skyrocket, aligning with whale optimism and lifting the broader market.
Rising inflation and accommodative monetary policy could boost demand
Multiple factors may boost the currency in the coming weeks. Recent market data shows that inflation is rising in the United States. Trading Economics data shows that inflation pink up to 2.4%, compared to the expected 2.3%, during the last year despite economists' predictions. Risk assets like bitcoin tend to do well in an inflationary environment.
In addition to rising inflation, most central banks are cutting interest rates further. Following the September rate cut, the US Federal Reserve plans to lower interest rates further in the coming months and early 2025.
Other central banks, including those in the European Union, the United Kingdom and other jurisdictions, such as China, have followed suit and reducing interest rates.
With the economy full of cheap money, global liquidity increases and more capital will be invested in btc and other quality assets. Consequently, there is a high probability that prices will align with the printed trend in the first quarter of 2024.
Featured image from Canva, TradingView chart
