Bitcoin’s price surged by 0.34% in the Sunday trading session, demonstrating its ability to stay above the $60000 psychological threshold. This upward momentum is being driven by the accumulation of assets by whales/institutions and the market’s anticipation of a 0.5% interest rate cut in the upcoming September FOMC meeting.
Could Whale Accumulation Propel Bitcoin’s Price to a New All-Time High?
According to data from Spotonchain, a significant whale has been actively accumulating Bitcoin since August 29th. This whale has purchased approximately 3,933 BTC (equivalent to $234 million) from the crypto exchange Binance, with the latest withdrawal occurring at a price close to $59,591 per BTC today.
Currently, this whale holds a total of 10,491 BTC (approximately $630 million). Large transactions like this often instill confidence in the market, leading to price rallies following purchases made by whales and smart money.
However, this same whale allegedly sold 7,790 BTC (worth around $467 million) to Binance at approximately $59,953 on June 27 and July 8, 2024, contributing to a sharp 14% drop in Bitcoin’s price.
As Bitcoin surpassed $60K, this significant whale continued to withdraw BTC from Binance!
Since August 29, the whale has withdrawn a net total of 3,933 BTC ($234M) from Binance at about $59,591, with the latest withdrawal happening just 4 hours ago.
It’s worth noting that this accumulation occurred following previous significant withdrawals by the whale…
— Spot On Chain (@spotonchain) September 15, 2024
Additionally, the business intelligence firm Microstrategy recently expanded its Bitcoin holdings by acquiring 18,300 BTC worth $1.11 billion. This acquisition brings the company’s total Bitcoin reserve to 244,800 BTC, as shared by Executive Chairman Michael Saylor.
In conjunction with whale/institutional investments, the surge in Bitcoin’s price to $60000 is likely driven by expectations in the market regarding the impending rate cut in September.
Following the recent moderation in US CPI and PPI inflation data, there is growing speculation about a potential 50 basis point rate cut by the US Federal Reserve at the upcoming FOMC meeting. According to the CME FedWatch Tool, there is a 50% probability of a 0.5% rate cut by the Fed, with an equal likelihood of a 0.25% rate cut.
A rate reduction typically facilitates easier access to funds for banks, promoting capital flow in the market and encouraging investment in riskier assets like cryptocurrencies.
Bitcoin Price Poised for Significant Breakout
With Bitcoin’s price standing at $60174, it is now just 1% away from a major breakout above the downward trendline. The persistent dynamic resistance that has been in place since late July is driving the current correction trend, and a potential breakout could amplify the bullish momentum.
If buyers successfully turn overhead resistance into support levels, Bitcoin’s price could aim for $68000 and potentially reach an all-time high resistance around $73777.
On the flip side, Bitcoin’s price prediction indicates a significant hurdle at the $65800 mark, as over 6.84 million addresses collectively hold roughly 3.1 million BTC.
Therefore, if a potential rebound encounters selling pressure at this resistance level, it could lead to an extended consolidation phase for Bitcoin.
The article, “Bitcoin Price $60K Breakout Meets Major Accumulation; Is ATH Next Stop?” was originally posted on CoinGape.