- Buying pressure on Bitcoin has increased over the past week.
- BTC has successfully tested support and could soon head towards $68,000.
Bitcoin [BTC] has once again entered the consolidation phase as the price hovered around $67,000. Meanwhile, deep-pocketed players in the game opted to cash in on the winnings. Will this have a negative effect on the BTC price in the coming days?
Bitcoin whales are creating buzz
Ali, a popular crypto analyst, recently posted one tweet to draw attention to an interesting development. According to the tweet, Bitcoin whales recently cashed out more than $1.4 billion in profits. This was evident in the huge increase in realized profits of BTC’s long-term USD whale holders.
Source
AMBCrypto actually too reported rather the increase in BTC whale activity. The number of BTC whales has increased as they expand their holdings towards the 4 million mark. With this, BTC whales reached 2021 levels.
AMBCrypto next planned to check market sentiment to find out if the increase in whale activity had any impact on purchasing behavior. According to our analysis of Santiment’s data, BTC outflows peaked on October 20, 2024.
Thanks to that, the supply of BTC on the exchanges decreased, while the supply outside the exchanges increased. All these statistics indicated that the buying pressure on the king coin was high. A rise in the statistic is considered a bullish signal because it is often followed by price increases.
Source: Santiment
Will BTC finally become volatile again?
While all this was happening, the price of BTC started to consolidate. The price of the king coin moved only marginally last week. At the time of writing, it was trading just above $67k.
To better understand whether the increase in buying pressure will allow BTC to post gains, AMBCrypto checked CryptoQuant’s data.
According to our analysis, BTC’s aSORP turned red. This indicated that more investors have started selling at a profit lately. In the middle of a bull market, this could indicate a market top.
Another bearish measure was the ZERO. The measure showed that investors were at a belief stage where they are currently in a state of high unrealized gains.
Source: CryptoQuant
Apart from this, Bitcoin ratio long/short also saw a large decline. A decline in the benchmark means that there are more short positions in the market than long positions.
When that happens, it indicates that bearish sentiment around an asset is increasing.
Read Bitcoins [BTC] Price prediction 2024–2025
Next we looked at the daily chart of the king coin. The Bollinger Bands revealed that BTC successfully tested its support during the 20-day SMA.
Moreover, the technical indicator also suggested that the price of BTC was in a high volatility zone. These indicated that in case of an upward price move, BTC could soon reach its resistance at $68.5k.
Source: TradingView