In recent days, Bitcoin [BTC] has continued to exhibit a bullish trend, maintaining its positive momentum in both monthly and weekly price movements. Currently priced at $68.3k, the cryptocurrency has experienced a 10% increase in value over the month and a 9% increase over the week.
Despite these gains, it is worth noting that Bitcoin still stands 7.27% below its all-time high reached earlier this year.
During this period of growth, it was the significant involvement of whales that largely contributed to Bitcoin’s rise.
Can Bitcoin whales be credited for the surge?
Recent data from Santiment revealed a substantial spike in the number of Bitcoin whales when the price of BTC dipped to $59k.
Between October 10th and 13th, an additional 268 wallets started accumulating between 100 to 1k BTC, suggesting that whales played a crucial role in driving the current rally of Bitcoin. Without the influx of capital from whales, it is unlikely that the weekly surge in price would have occurred.
During the market downturn, whales opted for accumulation, indicating their optimistic outlook on the future value of the cryptocurrency.
Historically, an increase in whale holdings has often foreshadowed a bullish market trend. Consequently, the recent price movement can be attributed in part to the heightened activity of whales.
Interpreting Bitcoin’s market data
Whales serve as key influencers in dictating the price actions of cryptocurrencies.
Therefore, a rise in whale accumulation signals positive market sentiments, as seasoned investors anticipate further appreciation in the cryptocurrency’s value.
These positive market sentiments could potentially pave the way for additional price gains for Bitcoin.
For instance, Bitcoin’s Long/Short Ratio has consistently remained above 1 within the last 24 hours, indicating a market dominance by long-position holders.
Moreover, the MVRV Long/Short difference for Bitcoin experienced a notable surge over the past week, climbing from a meager 3.59% to an impressive 5093%. This surge signifies that long-term investors have been profiting from their investments.
As the long-term holders’ MVRV surpassed that of short-term holders, it underscores the confidence in the cryptocurrency’s future prospects among investors.
Lastly, Bitcoin’s Fund Flow Ratio reached a monthly peak of 0.15, indicating a stronger buying pressure compared to selling pressure for BTC.
Consequently, investors continue to accumulate Bitcoin, expressing their confidence in the cryptocurrency and setting the stage for favorable market conditions.
Currently, with the strong investor sentiment and market favorability, Bitcoin holds a promising position. Should this trend persist, it is likely that the cryptocurrency will surge past the $70k mark in the near future.