Bitcoin (BTC), the world’s biggest cryptocurrency has been in a choppy range for more than six months. However, in the past few weeks, investor and whale interest has peaked. On September 10, 2024, a prominent crypto analyst made a post on X (previously Twitter) that in the past two months, over 236,155 BTC worth $14.22 billion have been withdrawn from the cryptocurrency exchange.
Increased Whale Activity and Accumulation
Tokens withdrawn from the exchanges are generally considered as a positive sign or an indication of accumulation. However, during this period, BTC has remained in a sideways trend and mostly at the lower end of the parallel channel pattern.
The Analyst also noted that the estimated leverage ratio across all the crypto exchanges has hit its highest level in 2024, indicating that, apart from investors, Bitcoin traders are also taking on high risks. Combining all this data suggests that Bitcoin (BTC) is poised for a massive rally soon.
Bitcoin Technical Analysis and Upcoming Levels
According to expert technical analysis, BTC appears bullish as it recently broke out of a descending trendline on the four-hour time frame and is currently at a crucial resistance level of $57,850. On a four-hour time frame, BTC has been consolidating in a tight range near that level.
Based on the historical price momentum, if BTC gives a breakout of this consolidation zone and closes a four-hour candle above the $58,000 level, there is a high possibility could soar by 13% to the $65,000 level.
However, this bullish thesis will only hold if BTC closes a candle above the $58,000 level, otherwise it may fail. Currently, technical indicators such as the Relative Strength Index (RSI) and the 200 Exponential Moving Average (EMA) suggest that BTC may see some price correction.
Current Price Momentum
At press time, BTC is trading near the $57,500 level and has experienced a price surge of 1.45% in the last 24 hours. Meanwhile, its open interest has remained stable during the same period, suggesting that investors and traders might be waiting for the potential breakout.
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