Will Whales Uphold Bitcoin’s Altitude Above $80K amid Pricing Speculation?
In eager anticipation of Trump’s forthcoming policy stance on the digital asset sphere, Bitcoin [BTC] is currently riding a wave of enthusiasm that is propelling it close to the $80K mark.
Despite Bitcoin not reaching an overbought state yet, its high-risk profile might dissuade certain investors from entering the market.
Renowned financial guru Robert Kiyosaki has chimed in, stressing the importance of steering clear of wishful thinking and focusing on solid investment principles, irrespective of the prevailing market price.
On the contrary, another prominent analyst has urged caution as Bitcoin nears a historic threshold.
Amid these exceptional circumstances, a thorough analysis by CryptoCrypto suggests that an underlying catalyst is imperative to shield Bitcoin from the prospect of a potential downturn.
Market Poised for Fluctuations
In the previous presidential election cycle, it took a span of two months characterized by erratic price movements to propel Bitcoin to a value of $40K for the first time, marked by noticeable retracements along the way.
Nevertheless, in the current scenario, even though the surge has shown a more sustained uptrend with consecutive green candlesticks over the last five days, the stakes are significantly higher, given Bitcoin’s prevailing valuation.
Consequently, as the price edges close to $80K, the risks escalate, and any potential retraction could trigger substantial market fluctuations.
One factor contributing to this uncertainty is the heightened leverage ratio in perpetual trades, as underscored in a different report by CryptoCrypto, rendering BTC susceptible to abrupt swings.
At present, a substantial portion of the market volatility is fueled by activities on key trading platforms such as Binance and OKX.
The proportion of traders opting for long positions has notably dwindled, while short positions are witnessing a robust resurgence, setting the stage for a possible long-squeeze scenario.
This setup bears resemblance to the late October period when Bitcoin surged to $72K, only to regress to $67K within a week, as indicated in the provided chart.
Moreover, during the election buildup, a surge in investors adopting long positions on Bitcoin resulted in a record-breaking volume of short liquidations amounting to approximately $371 million.
However, these extended positions could face jeopardy if FOMO dissipates, buying interest wanes, and the market begins to overheat, particularly with the RSI teetering in overbought territory. Consequently,
Bitcoin Necessitates a Stimulus to Alleviate the Strain
Post-election, there was a notable spike in large Bitcoin transactions amounting to a peak of $90 billion, indicating a significant surge in whale activity. Their outlook on the present price level as an opportune entry point holds paramount importance.
Chart analyses by CryptoCrypto unveil that the ongoing accumulation by whales mirrors the peak witnessed in March when BTC attained its all-time high of $73K.
Nonetheless, that peak was succeeded by a decline, partly influenced by fluctuations in the derivative markets, as discussed earlier.
Therefore, for Bitcoin to sustain its position above $80K, unwavering support from prominent HODLers is indispensable, a development to closely monitor in the forthcoming days.
On the whole, Bitcoin maintains a bullish outlook, with the potential for a short-term surge beyond $80K.
Yet, amidst escalating volatility and a surge in short positions, the consistent accumulation by whales plays a pivotal role in mitigating the pressure and upholding a risk-averse market sentiment – particularly with the stakes running high.