Bitcoin (BTC) price fell to a low of $65,200 before quickly recovering above $67,000, up 3%. Despite the recent downturn, an indicator tracking long-term Bitcoin accumulation sentiment remains unchanged as BTC whale holdings reach new highs.
Bitcoin whale balances indicate “optimistic” long-term expectations.
BaroVirtual, a verified Bitcoin researcher at CryptoQuant, highlighted that whale holdings have now reached a new all-time high (ATH) of approximately 670,000 BTC. The chart shows an increasing trend heading into 2024, with whales surpassing their previous ATH holding levels for the first time since 2020 in July.
Bitcoin whale holdings chart. Source: CryptoQuant
Commenting on the current increase in whale stocks, the researchers said it was an optimistic long-term sign, saying:
“This accumulation phase may be characterized as a period of calm before a storm develops in the medium to long term.”
BaroVirtual added that while the price of BTC can often move in a sideways trend when the value of a whale’s holdings shows new peaks, a bull market creates more demand.
Therefore, Bitcoin’s parabolic price rise occurs when whales gradually reduce their holdings and individual investors absorb selling pressure from the market.
Cointelegraph previously reported that Bitcoin whale accumulation is currently similar to the 2020 trend. Bitcoin whale rates on spot exchanges have matched previous highs in 2020, with whale wallets amassing more than 1.5 million BTC over the past six months.
Related: Bitcoin Whale Accumulation Reflects 2020 Trends, Which Seen BTC Up 550%
Bitcoin reclaims $67,000 as ETF inflows turn positive.
On October 22, Bitcoin ETF flows hit a net negative $79.1 million for the first time in two weeks after BTC prices fell 3% a day earlier. Although the community had expected a period of institutional downtime, data showed that ETF inflows surged to $192.4 million on October 23.
Positive inflows were observed in BTC’s daily negative candle, inferring the institution’s continued bullish sentiment regardless of the short-term decline.
Meanwhile, independent cryptocurrency analyst Mustache highlighted Bitcoin’s recent bullish golden moment indicator.
The analyst claimed that the indicator has successfully called the start of a bullish zone four times in the last four years, making it a reliable tool.
Bitcoin Golden Moment Indicator Chart by Mustache. Source: X.com
From a technical perspective, Bitcoin managed an immediate recovery above $67,000 after showing a V pattern in the first order block or demand zone.
As Cointelegraph reported on October 23, the most optimistic scenario for BTC is an immediate rally from $64,500 after the cryptocurrency asset mirrored July’s ‘fractal’ pattern.
Bitcoin 4 hour chart. Source: Trading View
Currently, BTC’s price action is progressing as expected, but further bullish confirmation will come after the daily candle moves above the overhead resistance of $67,800.
Related: How Low Can Bitcoin Price Go?
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.