Bitcoin (BTC) is currently witnessing a price recovery after a brief dip earlier this week. Despite these fluctuations, a CryptoQuant analyst under the pseudonym BaroVirtual has shared some encouraging long-term results insights about whale activity.
According to the analyst, whales – major holders of Bitcoin – now control around 670,000 BTC, the highest number ever recorded. This accumulation phase by whales is seen as a positive signal for Bitcoin’s long-term prospects.
Whale continues to accumulate
BaroVirtual highlighted that when whale stocks reach such high levels, Bitcoin tends to remain in a sideways trading pattern or experience mild price declines. However, this accumulation phase often serves as a harbinger of significant upward movement in the cryptocurrency’s value.
The analyst described this phase as the ‘calm before the storm’, suggesting a big price rise could be on the horizon as whales gradually reduce their holdings. This pattern has historically led to long-term price increases for Bitcoin.
BaroVirtual also warned of potential risks associated with the upcoming US presidential election, noting that if Bitcoin fails to update its all-time high between the election and the end of November, it could signal deeper problems within the current bull cycle. The message on the CryptoQuant QuickTake platform read:
Finally, if the all-time high price is not updated between the US presidential election and November 28 (+/- 21 days), it will indicate serious problems with the current bull cycle, and things will get ugly.
Bitcoin Market Performance and Outlook
Parallel to these developments, Bitcoin has seen a price rebound after 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% in the past day.
This price recovery is consistent with technical signals pointing to a possible continuation of the bull run. A well-known crypto analyst known as CryptoBullet recently noted on X that Bitcoin’s weekly Moving Average Convergence Divergence (MACD) indicator has entered bullish territory for the first time since October 2023.
CryptoBullet highlighted that this setup is reminiscent of Bitcoin’s 2021 price action, which saw a similar vertical rally followed by a medium-term correction. However, unlike the deeper correction of 2021, the current phase has taken longer to unfold but has not been as severe.
The analyst remains optimistic and predicts that Bitcoin will likely break out of its multi-month consolidation phase, leading to a new all-time price level.
#Bitcoin The weekly MACD is bullish for the first time since October 2023!
But this image reminds me strongly of 2021: the same Vertical Rally (MACD peaked) followed by a painful Mid Term Correction (this time it’s not as deep though, it just took more time).
Now $BTC is… pic.twitter.com/q03dN7GgS6
— CryptoBullet (@CryptoBullet1) October 23, 2024
Featured image created with DALL-E, Chart from TradingView
