Key Points
- Bitcoin’s price is set to reach a new all-time high due to increased demand from Bitcoin whales.
- Bitcoin’s dominance in the market is showing signs of a reversal, indicating a possible shift to the altcoin market.
Bitcoin’s price surged by over 10% last week, retesting resistance levels around $67K. The leading cryptocurrency is forming a bullish flag, suggesting a potential surge towards $69K before retesting its all-time high above $73K.
The price of Bitcoin has consistently closed above the daily 50 Moving Average (MA) for the past six days, indicating that the bulls are currently dominating the market.
In addition, Bitcoin has led a market correction in the altcoin industry for the past two months. This comes a month after the fourth Bitcoin halving, with the altcoin industry continuing to lose ground to Bitcoin, as shown by the falling trend in the ETH/BTC.
Whale Accumulation of Bitcoin
On-chain data from market intelligence platform Santiment shows that Bitcoin whales are absorbing the renewed sell-off from short-term holders. Specifically, small Bitcoin wallets have decreased by over 182k in the past week. In contrast, both Hong Kong and United States-based spot Bitcoin ETFs saw significant cash inflows last week.
Hong Kong-based spot Bitcoin ETFs experienced an inflow of approximately $244 million in total net assets. US-based spot BTC ETFs accumulated over 14k Bitcoins last week. Interestingly, Bitcoin miners only created around 520 units last month, suggesting increased demand from institutional investors.
On-chain data reveals that a single entity purchased over 16,445 Bitcoins, worth more than $1.1 billion, in the past 24 hours. Another crypto whale has been spotted aggressively accumulating Bitcoins in the past 24 hours, with purchases exceeding $106 million.
Bitcoin Price Targets
Bitcoin’s price rebounded strongly from a recent correction to trade around $67k on Monday during the London session. The leading cryptocurrency has confirmed a reversal pattern via an inverted head and shoulder (H&S) formation. A sustained close above $67K in the coming days will likely trigger a rally towards a new all-time high of around $74,747, aligning with the daily 1.618 Fibonacci Extension.
On the weekly time chart, Bitcoin’s price had its first green candlestick in the past two months, indicating a potential uptrend. Additionally, the weekly Relative Strength Index (RSI) has been attempting to rally above the 70 level, a widely recognized bullish indicator.
Bitcoin’s dominance on the weekly chart is forming a reversal pattern, signaling an impending shift of crypto cash to the altcoin market. Bitcoin dominance has been increasing on the weekly timeframe, but the RSI is showing a bearish divergence.
As a result, it would be wise for crypto traders to keep an eye on the altcoin industry in the coming months as it is predicted to outperform Bitcoin, which boasts a market cap of over $1.3 billion.