Bitcoin (BTC) is currently seeing price recovery after a slight decline earlier in the week. Despite this volatility, a CryptoQuant analyst under the pseudonym BaroVirtual shared encouraging long-term data about whale activity.
According to the analyst, whales—the biggest owners of Bitcoin—now control about 670,000 BTC, the highest amount ever recorded. This phase of whale accumulation is seen as a good signal for the long-term outlook of Bitcoin.
The Whale Continues to Accumulate
BaroVirtual emphasized that when the whale catch reaches such high levels, Bitcoin often stays in a sideways trading pattern or falls in price. This phase of accumulation, however, often serves as a precursor to a significant increase in the value of the cryptocurrency.
The analyst described this phase as the “calm before the storm,” suggesting that a major increase in numbers may be imminent as the whales gradually reduce their habitat. This pattern has historically led to long-term price increases in Bitcoin.
BaroVirtual also warned of potential risks tied to the upcoming US presidential election, noting that if Bitcoin fails to renew its peak period between the election and the end of November, it could indicate deeper problems within the current bull cycle. A post on the CryptoQuant QuickTake site reads:
Finally, if the all-time high price between the US presidential election and November 28 (+/- 21 days) is not updated, this will indicate serious problems with the current bull cycle, and things will get worse.
Bitcoin Market Performance and Outlook
In line with these developments, Bitcoin has seen a surge in price following a recent dip that followed its attempt to break the $70,000 level on Monday. After the correction, Bitcoin is currently trading at $67,658, marking an increase of 2.4% over the previous day.
This price recovery is accompanied by technical signals that indicate a possible continuation of the bull run. Well-known crypto analyst CryptoBullet recently noted on X that Bitcoin’s weekly Moving Average Convergence Divergence (MACD) indicator has crossed into bullish territory for the first time since October 2023.
CryptoBullet highlighted that this setup is reminiscent of the Bitcoin price action of 2021, which saw a similar vertical rally followed by a mid-term correction. However, unlike the deep fix of 2021, the current phase took more time to unfold but was not as difficult.
The analyst remains optimistic, predicting that Bitcoin will likely break out of its multi-month consolidation phase, leading to a much higher price.
#Bitcoin Weekly MACD breaks bullish for the first time since October 2023!
But this picture reminds me a lot of 2021: the same Vertical Rally (MACD peaked) followed by a painful Medium-term Correction (however, this time it is not so deep, it took more time).
Now $BTC it’s… pic.twitter.com/q03dN7GgS6
– CryptoBullet (@CryptoBullet1) October 23, 2024
The featured image was created with DALL-E, a Chart from TradingView