Bitcoin price retests $65k; thanks to whales and sharks

Bitcoin price retested the key resistance level at $65,000, thanks to the ongoing accumulation by whales and sharks and strong technical indicators.

Bitcoin (BTC) has entered a technical bull market after rallying over 21% from its monthly lows. According to Santiment, this price action was largely fueled by increased accumulation by whales and sharks.

🐳📈 Bitcoin officially reached $65,000 market cap for the first time since August 1. The continued accumulation of whales and sharks has been a factor that has prevented BTC from seeing sustained declines. $4.08 billion worth of BTC has been accumulated by more than 10 BTC wallets in 6 months. picture.twitter.com/9qGcVqtfZT

— Santiment (@santimentfeed) September 26, 2024

MicroStrategy, the largest institutional Bitcoin holder, has been at the forefront of these purchases, with the company purchasing $458 million worth of the coin earlier this month, bringing its total holdings to 252,220.

Institutional investors are also increasing their Bitcoin purchases, with data showing that all funds have seen inflows for five consecutive days, with net inflows totaling over $600 million this month.

These gains were attributed to falling interest rates in many countries, increasing global money supply, and the Chinese government’s recent stimulus measures, which plan to inject $142 billion into the economy. All of these factors have contributed to a sense of risk-taking among investors, as evidenced by the rising fear and greed index.

Bitcoin is also responding to the rising US public debt, which has risen above $35.4 trillion with annual interest payments approaching $1 trillion. Investors believe that Bitcoin and gold are better alternative assets to hedge against default risk.

Additionally, Bitcoin’s price remained stable due to improving technical indicators. It formed an inverse head and shoulders pattern, avoided a death cross pattern, and the Relative Strength Index continued to rise, suggesting increasing momentum.

But Bitcoin is not out of danger yet. A clear bullish breakout will be confirmed when it breaks above the upper part of the descending trendline connecting the highest swings since March.