Aaryamann Shrivastava
FXStreet
- Tether whales have been reducing their holdings, while Bitcoin whales have been increasing theirs for weeks.
- Bitcoin is possibly going to sustain the active bullishness to flip $20,000 into support by the end of this week.
- Consequently, the king coin’s market value could also note a boost and rise above the 44-months lows.
The crypto market has been in a suspended state for the last couple of months, and that effect does not seem to have gone away.
Micro fluctuations do take place every now and then. However, on the macro time frame, crypto assets need a major boost. Interestingly in the case of Bitcoin, a change in a particular pattern could be the signal of a trend reversal.
Bitcoin whales are back
Since the end of August, Tether whales had been consistently accumulating as Bitcoin whales’ supply kept declining. This could be due to the persistent market conditions, but these whales’ behavior has been notably changing over the last couple of days.
While Tether whales’ supply has begun falling, Bitcoin whales have returned to accumulating. A rare sight this year, this cohort has been amassing BTC significantly. Since September 27, the BTC addresses holding 100 to 10,000 BTC have added about 46,173 BTC worth over $934 million to their wallets.
BTC price has been in consistent recovery in the same duration, with the biggest 24-hour rise in almost a month observed yesterday as it increased by 6.73%. Currently trading at $20,034, Bitcoin might be on track to register recovery as the Parabolic SAR indicated an uptrend for the first time in a month.
Bitcoin 24-hour price chart
The presence of the black dots below the candlesticks is evidence of the same. Additionally, over the last few weeks, the Relative Strength Index (RSI) has also been flashing bullish signs as the buying pressure increased.
If the bullishness is sustained, BTC might be on track to flipping $20,000 into support.
Bitcoin’s market value to go up?
Following the bearishness, BTC’s market value has been under the bar for almost two months, even falling to the same level the market value to realized value (MVRV) ratio was at, back in March 2019.
Bitcoin MVRV ratio
If the king coin’s price rises, its demand will potentially observe an increase as well. Consequently, the market value of the asset will recover, bringing it above the neutral level of 1.0.
This would act as a crucial bullish signal going forward.
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