Key Points
- Bitcoin’s price has seen a 9.06% increase over the past week, largely driven by heightened whale activity.
- Whale accumulation signals a potential bullish trend, indicating confidence in Bitcoin’s future value.
Over the past week, Bitcoin (BTC) has continued its bullish trend, trading at $68.3k. This represents a 10% monthly gain and a 9% weekly gain.
Despite these gains, it’s worth noting that Bitcoin is still 7.27% below its all-time high recorded earlier this year.
Role of Bitcoin Whales in the Price Surge
Data from Santiment shows that the number of Bitcoin whales increased significantly when Bitcoin’s price dropped to $59k. Between 10 to 13 October, 268 more wallets started holding between 100-1k BTC, suggesting that whales were instrumental in the ongoing Bitcoin rally.
This implies that without whale capital inflows, the weekly rally would probably not have happened.
During the dip, whales accumulated more Bitcoin, indicating their confidence in the cryptocurrency’s future value.
Indicators of a Bullish Trend
Typically, an increase in whale holdings signals a potential bullish trend. As such, the recent price movement can be partly attributed to the surge in whale activities.
The hike in whale accumulation also indicates positive market sentiment, with experienced investors expecting the value of Bitcoin to further appreciate.
Bitcoin’s Long/Short Ratio has remained above 1 over the past 24 hours, suggesting that long-position holders are dominating the market.
Furthermore, Bitcoin’s MVRV Long/Short difference surged over the past week from a low of 3.59% to 5093%, indicating that long-term investors are in profit.
The Fund Flow Ratio of Bitcoin also hit a monthly high of 0.15, suggesting higher buying pressure than selling pressure.
In light of these factors, Bitcoin is in a favorable position. If the trend continues, Bitcoin might reclaim $70k in the short term.