Bitcoin Analysis: Whales, ETFs, and the $65,000 Test

KEYTAKEAWAYS

TABLE OF CONTENTS

• KEY TAKEAWAYS
• WHALES ARE ACCUMULATING
• TECHNICAL ANALYSIS POINTS TO A POTENTIAL NEW BULLISH CYCLE
• ETFS AND INSTITUTIONAL INVESTORS
• HAVE WE TURNED A CORNER?
• DISCLAIMER
• WRITER’S INTRO

CONTENT

Bitcoin sees bullish signals as whales accumulate and ETFs surge. Technical analysis points to a potential new cycle, but challenges like Mt. Gox liquidation loom.

>>> Recent Bitcoin News:

• Crypto Market Update in Early July: Ethereum ETFs, Bitcoin Trends, and Future Influences

• Memecoins Outshine Bitcoin in First Half of 2024, Forbes Reports

WHALES ARE ACCUMULATING

Bitcoin’s recent performance has been a rollercoaster, with both promising signs and potential risks on the horizon. The cryptocurrency has weathered significant challenges, including a $3 billion sell-off by the German State of Saxony, experiencing a nearly 20% correction at its lowest point. However, recent data suggests a bullish turn may be underway.

According to IntoTheBlock data, Bitcoin whale addresses increased their holdings by 71,000 BTC (worth about $4.3 billion) during the price dip to $54,200 on July 5th. CryptoQuant data confirms this trend, showing whales are accumulating Bitcoin at the fastest rate since April 2023, reminiscent of the period following the Silicon Valley Bank crisis. This accumulation by large holders could signal growing confidence in Bitcoin’s long-term prospects.

TECHNICAL ANALYSIS POINTS TO A POTENTIAL NEW BULLISH CYCLE

Bitcoin has demonstrated resilience. After testing the lower Bollinger Band on the weekly chart without further decline, Bitcoin has recovered lost ground, forming a double bottom pattern and testing $65,000. This suggests strong demand at the bottom and potentially marks the start of a new bullish cycle. To confirm the reversal of the medium-term downtrend, Bitcoin must sustainably surpass the 21-week EMA at $61,133, which aligns with the average ETF buyer’s entry price.

ETFS AND INSTITUTIONAL INVESTORS

Bitcoin ETFs

Investment flows paint an encouraging picture. As of July 15th, two major U.S. Bitcoin ETFs have surpassed MicroStrategy in Bitcoin holdings. BlackRock’s IBIT holds 316,284 BTC, while Grayscale’s GBTC holds 273,726 BTC. MicroStrategy remains in third place with 226,331 BTC. Overall, Bitcoin spot ETF inflows have resumed, accumulating $15.5 billion and surpassing the previous year-to-date record. Despite Bitcoin falling below the average ETF entry price of nearly $60,000 earlier, dip buyers emerged, purchasing $407 million of the $810 million mined last month.

>>> Read more: Bitcoin ETF Investors Capitalize on Market Dip: Daily Inflows Surge to $295M

Market liquidity has also shown improvement, with crypto liquidity increasing by $3.4 billion in a recent week after $8 billion of outflows since mid-June. Stablecoin minting rose moderately, and futures open interest grew, indicating renewed market engagement.

Ethereum ETFs

An additional catalyst has emerged with the approval and listing of Ethereum spot ETFs on July 23rd, pushing Ethereum prices to $3,500 and Bitcoin to around $65,000. This mirrors the pattern seen before the approval of Bitcoin spot ETFs, suggesting that history, while not repeating, may be rhyming.

>>> Read more: ETH Spot ETFs Nearing Approval: Impact on ETH Price and Ecosystem Projects to Keep an Eye On

HAVE WE TURNED A CORNER?

However, challenges remain. The impending Mt. Gox liquidation could impact the market between August and October, with up to $6 billion potentially being sold. This, coupled with historically weak seasonal performance in September, could create some turbulence for Bitcoin traders.

Despite these concerns, the overall outlook has become more optimistic. Ben Simpson from Collective Shift suggests the worst may be over, citing factors such as the end of Germany’s “forced selling,” Mt. Gox repayments being largely priced in, Jerome Powell hinting at potential rate cuts, S&P 500 hitting new highs, and significant inflows into Bitcoin ETFs.

While there are still potential risks to navigate, the recent accumulation by whales, strong ETF inflows, and improving technical indicators paint a more bullish picture for Bitcoin. The market appears to be entering a new phase, with institutional involvement deepening and macro factors potentially aligning in Bitcoin’s favor.

>>> Read more:

• Bitcoin Plunge: One Statistic Reveals Who’s Panicking and Who’s Not

• 2024 Crypto Market Alert: Dangerous Bubbles in Altcoins, Tap-to-Earn, and AI Stocks

▶ Buy Bitcoin & Ethereum at Binance

Enjoy up to 20% off on trading fees! Sign up Now!

Looking for the latest scoop and cool insights from CoinRank? Hit up our Twitter and stay in the loop with all our fresh stories!