Coinspeaker
Bitcoin Whales Bolster Underlying Bullish Sentiment, BTC at Around $56K
Bitcoin BTC $56 736 24h volatility: -0.7% Market cap: $1.12 T Vol. 24h: $30.73 B price briefly teased $58K in the past 24 hours before sliding to $56,691 on Wednesday, during the mid-London session. The flagship coin registered heightened volatility earlier today as the market factored in the first US presidential debate between Donald Trump and Kamala Harris.
As Bitcoin price consistently closed above the crucial support level of around $56k in the last three days, the fear of further crypto capitulation has significantly decreased. Bitcoin’s fear and greed index was about 37 percent, up from 23 percent three days ago, which denotes extreme fear.
Bitcoin Whales Accelerates Accumulation Pace
According to on-chain data analysis, around 236,155 Bitcoins, worth about $14.2 billion, have been withdrawn from different crypto exchanges. The whale investors have been absorbing the rising selling pressure from short-term traders, who are fleeing the market. Following the recent Bitcoin price jump, short-term Bitcoin holders sold over 14.8k BTCs, worth around $850 million.
The notable spike in stablecoins supply in crypto exchanges in the last few days has increased the overall buying pressure, presumably from institutional investors. Furthermore, the US spot Bitcoin ETFs have now registered two consecutive days of net cash inflows after a prolonged bleeding in the past two weeks.
On Tuesday, the US spot Bitcoin ETFs registered a net cash inflow of about $116 million, led by Fidelity’s FBTC and Grayscale Bitcoin Mini Trust (BTC).
Meanwhile, on-chain data shows that several whale investors have made significant withdraws from different crypto exchanges in the past 24 hours, including from Kraken and Binance.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 3,009 #BTC (174,052,861 USD) transferred from #Kraken to unknown wallethttps://t.co/IZkWoEUyuH
— Whale Alert (@whale_alert) September 10, 2024
Market Picture
The Bitcoin market, and the entire altcoin industry, is anxiously awaiting today’s US CPI data from the Bureau of Labor Statistics, which will give insights into the Fed’s decision on the economic outlook next week.
The likelihood of the Fed cutting rates next week remains high, as Canada and the European Central Banks have already initiated their respective interest rate cuts.
Meanwhile, the upcoming US general election is expected to trigger the next bullish phase as global liquidity increases.
What Next
From a technical standpoint, Bitcoin price has been forming a weekly bullish flag in the ongoing correction since early March, which could yield a breakout in the fourth quarter. Furthermore, historical data shows that Bitcoin price tends to perform well in the fourth quarter, compared to the third quarter.
Analyzing historical peaks for #Bitcoin keeps me Bullish 🚀 pic.twitter.com/kLtxmyuaub
— The Moon (@TheMoonCarl) September 11, 2024
However, Bitcoin’s bullish sentiment in the fourth quarter could be invalidated if the flagship coin consistently closes below $50K in the coming weeks. In such a scenario, Bitcoin price will be headed towards the support level of around $40K.
Bitcoin Whales Bolster Underlying Bullish Sentiment, BTC at Around $56K
