Bitcoin Bullish Outlook as Whales Accumulate
Bitcoin price moved sideways on Tuesday even as investors moved to relatively risky assets. The BTC/USD pair was trading at 34,400, where it has been in the past few days. This price is a few points below the year-to-date high of 35,133. It has jumped by more than 122% from the lowest level this year.
Bitcoin rally eases
Bitcoin has been in a strong bullish trend in the past few months. The rally accelerated this month as hopes that the Securities and Exchange Commission (SEC) will accept a Bitcoin ETF by the end of the year.
Analysts believe that a spot BTC ETF will lead to more inflows from institutional investors in the coming months. This will be important since Bitcoin supply remains significantly lower.
At the same time, Bitcoin whales have continued accumulating the coin. MicroStrategy, the biggest Bitcoin whale, has bought coins worth over $4.8 billion. Further, the number of Bitcoin holders with over $100k coins have risen sharply in the past few weeks. The number stands at over 23.4k, the highest point this year.
The next important catalyst for the BTC/USD pair will be the upcoming Federal Reserve interest rate decision. Economists expect the Fed will deliver another hawkish pause. This happens when the bank leaves rates unchanged between 5.25% and 5.50%.
The Fed will also point to another rate hike later this year if inflation remains stubbornly high. The decision will come at a time when bond yields have surged to the highest level in years. At the same time, data published by the statistics agency showed that the economy expanded by 4.9% in the third quarter.
BTC/USD technical analysisThe BTC/USD pair has been in a strong bullish trend in the past few months. It managed to move above the important resistance point at 31,780, the highest point in July. The pair has also jumped above the 50-day and 200-day moving averages. The two have made a bullish crossover, which is commonly known as a golden cross.Bitcoin has also formed a bullish flag pattern and is now nearing the 38.2% Fibonacci Retracement level. It also formed an ascending triangle pattern. Therefore, the pair will likely continue rising as buyers target the 50% retracement point at 42,115.
