A few days before, whale cluster activity signaled robust demand for Bitcoin and Ethereum. In the crypto market, individual investors who possess huge quantities of Bitcoin are referred to as whales.
Whalemap data indicates that whales have probably started acquiring Bitcoin while it was trading at $10,370. On October 8, analysts stated that level of $10,570 continues to provide support.
This points out that whales acquired considerable amounts of Bitcoin in the range of $10,407 to $10,570.
10570 whale bubble support has held.
— whalemap (@whale_map) October 7, 2020
As whales generally account for huge share of buying and selling momentum in Bitcoin market, accumulation by whales acts as a catalyst for further moves.
To be specific, in the last two months, two multi-billion-dollar enterprises purchased considerable quantity of Bitcoin and revealed the info.
The first major investment that was revealed publicly was from MicroStrategy, which acquired $250 million worth Bitcoin in the second week of August. A few days later, the firm issued another statement revealing its purchase of an additional $175 million worth BTC.
Few weeks later, Square, a firm founded by Jack Dorsey, revealed that it acquired $50 million worth BTC. As per Peter Brandt, a seasoned market expert, the daily and weekly price charts of Bitcoin reveal a “big buy signal” after the investment made by Square.
Brandt stressed that Bitcoin purchases in huge volume by renowned enterprises is a highly notable event for BTC. He stated:
“It is a major development that a global corporation is now putting $BTC onto its balance sheet. The weekly and daily charts are poised to flash a big buy signal.”
The daily volume on crypto exchanges serving funds, large volume investors and major financial institutions, for example LMAX, Bakkt and Digital, has been on the rise since August.
It is a major development that a global corporation is now putting $BTC onto its balance sheet. The weekly and daily charts a poised to flash a big buy signal. https://t.co/p6652SfqVc pic.twitter.com/rCoKZCY5LB
— Peter Brandt (@PeterLBrandt) October 8, 2020
In addition to beneficial fundamental drivers such as whale accumulation and an increasing hash rate, the rise in institutional demand for BTC is providing additional thrust to the momentum witnessed in Bitcoin’s price.
The $10,500 zone has been a major support level for Bitcoin in the last three months. It has considerable historical pertinence and has worked as a central point for near-term price cycles.
Chart indicates that holding above $10,500 level is critical in ensuring a Bitcoin uptrend. The level reflects the July 2019 high, and it signals that BTC is using its earlier high to continue rebounding to new record highs.
Ki Young Ju, CEO of CryptoQuant, an on-chain analytics firm, stated that exchanges’ netflow has dropped to yearly low.
In general, sellers hold Bitcoin on wallets provided by exchanges with a plan of quick liquidation as and when opportunity arises. Therefore, when the quantum of BTC held in trading platform declines, it signals a drop in selling pressure.
He stated:
“BTC All Exchanges Netflow(MA30) hits the year-low lately. In most cases, exchange netflow is likely to keep negative when the bull-run is about to start. I would say the 2017 bull-run was the same.”
$BTC All Exchanges Netflow(MA30) hits the year-low lately. In most cases, exchange netflow is likely to keep negative when the bull-run is about to start. I would say the 2017 bull-run was the same.https://t.co/g6mPAd5sLP pic.twitter.com/tHzPagRGy8
— Ki Young Ju (@ki_young_ju) October 9, 2020
The convergence of decreasing selling pressure, increasing institutional demand and propitious design technically indicate that Bitcoin may turn out to be triumphant in transforming the current resistance level of $11,000 into support.