Bitcoin is struggling to maintain trading above the psychological level of $60,000, as the coin is currently trading at $60,019 per coin.
The upward momentum is attributed to the accumulation of whales and institutions as well as market expectations of a 0.5% interest rate cut at the September FOMC meeting.
Will Whale Accumulations Push Bitcoin Price to New Highs?
According to Spotonchain data, a massive whale has been accumulating Bitcoin since August 29. So far, the whale has purchased around 3,933 BTC worth $ 234 million from Binance, with the latest withdrawal today at $59,591 per BTC.
The whale currently holds 10,491 BTC, worth around $630 million. Typically, such large transactions boost market confidence, with prices then rising as whales buy.
However, this whale is said to have sold 7,790 BTC (worth around $467 million) on Binance between June 27 and July 8, 2024 at a price of around $59,953, contributing to a 14% drop in Bitcoin price.
Separately, Microstrategy increased its Bitcoin holdings by purchasing 18,300 BTC worth $1.11 billion, bringing its total holdings to 244,800 BTC, CEO Michael Saylor revealed.
Along with buying by whales and institutions, it is believed that the current rise in Bitcoin price to $60,000 may be driven by market expectations of an interest rate cut in September.
Will Bitcoin price see a major breakout?
Bitcoin price at $60,174 is just 1% below a major breakout of the downtrend line. The dynamic resistance that has been in place since late July is driving the current corrective trend, and a breakout could boost the bullish momentum.
If buyers can convert the current resistance into support, Bitcoin price could target $68,000, followed by the historical resistance level at around $73,777.
On the other hand, Bitcoin price predictions point to a notable resistance at the $65,800 level, where over 6.84 million addresses hold around 3.1 million Bitcoins.
Therefore, if the potential bounce faces supply pressure at this resistance, Bitcoin price may enter an extended accumulation phase.
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any asset, nor is it considered a request, offer, recommendation or suggestion for investment. We would like to remind you that each asset is evaluated from multiple perspectives and has significant risks, therefore any investment decision and the associated risks are up to the investor. We also do not provide any investment advisory services.
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