Bitcoin Price $60K Breakout Meets Major Accumulation; Is ATH Next Stop?

5 days ago 28

Bitcoin Price jumped 0.34% during the Sunday trading session, showcasing its sustainability above the $60000 psychological level. The bullish momentum is fueled by whale/institution accumulation and market anticipation of a 0.5% interest rate cut in the September FOMC meeting.

Will Whale Accumulation Drive Bitcoin Price to New ATH?

According to on-chain data tracker Spotonchain, a giant whale has been actively accumulating Bitcoin since August 29th. So far, the large holder has bought around 3,933 BTC (worth $234 Million) from the crypto exchange Binance with the latest withdrawal occurring earlier today at an approximate price of $59,591 per BTC.

Currently, this whale holds 10,491 BTC (valued at approximately $630 million). Typically, such large transactions boast market confidence, as a price rally follows whales/smart money buying.

However, the same whale allegedly dumped 7,790 BTC (around $467 million) around June 27 and July 8, 2024, to Binance at ~$59,953, contributing to a sharp 14% decrease in Bitcoin price.

This giant whale keeps withdrawing $BTC from Binance as #Bitcoin broke $60K!

Since Aug 29, the whale has withdrawn a net 3,933 $BTC ($234M) from #Binance at ~$59,591, with the latest withdrawal only 4 hours ago.

Note that this accumulating wave came after the whale had… https://t.co/GBhH2gDT1V pic.twitter.com/yQ6gnqvjpS

— Spot On Chain (@spotonchain) September 15, 2024

Anyhow, the business intelligence company Microstrategy has recently increased its Bitcoin holding by acquiring 18,300 BTC worth $1.11 billion. This purchase brings the company’s total Bitcoin holdings to 244,800 BTC, as Executive Chairman Michael Saylor revealed.

Along with whale/institutional buying, the Bitcoin price rally to $60000 is more likely driven by market anticipation of the September rate cut.

Following the recent cooling of US CPI and PPI inflation figures, speculation is rising over a potential 50 bps rate cut by the US Fed at the upcoming FOMC meeting. According to the CME FedWatch Tool, there is a 50% probability of a 0.5% rate cut by the US Federal Reserve and the same bet for a 0.25% rate cut.

Typically, a rate cut would allow banks to borrow money more easily for operations, boosting capital flow in the market and encouraging increased investment in riskier assets like cryptocurrency.

BTC Price Poised For Major Breakout

The Bitcoin price at $60174 is just 1% away from a major breakout of the downsloping trendline. The dynamic resistance intact since late July drives the current correction trend, and a potential breakout will boost the bullish momentum.

If the buyers flip overhead resistance into potential support, the BTC price could target $68000, followed by an all-time high resistance of around $73777.

On the contrary note, the Bitcoin price prediction shows a notable resistance at the $65800 mark as over 6.84 Million addresses hold approximately 3.1M BTC.