Bitcoin Eyes $70K as Whales Accumulate Amid Market Volatility and Key Data Releases, Says Analyst
- Institutional investors like BlackRock and Fidelity are adding to Bitcoin holdings amid market dips, reflecting strong confidence.
- Whale accumulation of 400,000 BTC in 30 days suggests ‘smart money’ sees current price levels as key buying opportunities.
- Bitcoin faces resistance at EMA50 and MA200, but potential rate cuts could fuel a push toward the $69,000-$70,000 range.
According to Dr. Profit, a crypto analyst on X, the past week’s market activity was a strategic opportunity for investors despite the market’s recent dip. Notably, institutional players like BlackRock and Fidelity remained unshaken, even increasing their holdings during the downturn. This reflects a larger trend of accumulation by whales, who reportedly added 400,000 BTC, or 2% of the entire supply, within just 30 days.
#Bitcoin – What’s Next?
The big Sunday report, all you need to know:
🚩 TA/LCA/Psychological Analysis: Last week was pure fun, despite the crash, some peoples fear became others euphoria. It was a great day to buy more and shake out the weak hands. BlackRock and Fidelity… pic.twitter.com/4vRmpUn4s6
— Doctor Profit 🇨🇭 (@DrProfitCrypto) August 11, 2024
Whale Accumulation and Market Sentiment
This accumulation phase highlights the ongoing confidence among major investors, even as retail traders displayed a more volatile response. Dr. Profit emphasizes that the ‘smart money’ did not panic sell during the recent drop but instead saw it as a buying opportunity.
The market remains within its established range, which has persisted throughout the year, with the lower end being identified as a key buying zone. This strategy aligns with Dr. Profit’s earlier prediction that Bitcoin would hit the $58,000 to $60,000 range, a target that was met shortly after being called.
Key Technical Indicators and Resistance Levels
The technical analysis shows the 50-day Exponential Moving Average (EMA50) and the 200-day Moving Average (MA200) as critical resistance levels. These metrics have consistently influenced Bitcoin’s price movements, with the current setup suggesting a potential pullback to the $54,000 to $55,000 range.
However, Dr. Profit remains bullish, noting that any such dip would be another buying opportunity rather than a cause for concern. The ultimate target remains the diagonal resistance at $69,000 to $70,000, with the market’s recent behavior reinforcing this upward trajectory.
Impact of Upcoming Economic Data on Market
Looking ahead, this week’s economic data releases, including the Producer Price Index (PPI) on Tuesday and the Consumer Price Index (CPI) on Wednesday, are expected to inject notable volatility into the market.
Dr. Profit anticipates that inflation data could outperform expectations, providing the Federal Open Market Committee (FOMC) with the justification needed for a rate cut in September. This potential policy shift could further support Bitcoin’s upward momentum, as lower interest rates generally favor risk assets like cryptocurrencies.