Bitcoin Price Eyes $70k Rally as Long-Term Holders Accumulate at Record Pace

The Bitcoin price has been wavering in an uncertain trend since last weekend. The demand pressure at $55000 has managed to stabilize the prevailing bearish sentiment but the overhead supply is intact amid the German government’s liquidation of BTC. As the associated address has recently emptied its Bitcoins, a positive trend is expected in the near term.

Also Read: Bitcoin Miner Northern Data Predicts Robust Revenue Growth Amid AI Boom

Bitcoin Price Stabilizes at $53.5K Amid Easing Selling Pressure

From June 5th to July 7th, Bitcoin price experienced a steady correction where its value plunged from $71949 to $53550 registering a loss of 25.57%. The downward pressure was bolstered by a mix of negative developments such as the aggressive outflow from BTC ETFs, and Bitcoin liquidation from the fallen Mt. Gox exchange, the U.S. and German governments’ sell-offs.

The selling pressure has recently eased since the second week of July as Bitcoin (BTC) found strong support at the $53,500 level, which aligns with the lower trendline of a broadening wedge pattern. In theory, the two divergence trendlines are a sign of increasing uncertainty among market participants and a risk of prolonged downfall.

However, a bearish breakdown from the lower trendline is needed to fulfill the bearish thesis. 

A recent reversal from $53500 has uplifted the asset 9.8% to trade at $58800 while the market cap surged to $1.159 Trillion.

If the pattern holds true, the Bitcoin price prediction hints at a potential upswing of 18% to challenge the overhead trendline.

Also Read: 3 BRC-20 Altcoins to Sell as Bitcoin Fails $60000 Breakout

Moreover, Bitcoin long-term holders are increasing their holdings at the fastest monthly rate since April 2023, according to analysts from CryptoQuant. Despite the increased supply from seized coins and the Mt. Gox distributions, whale Bitcoin (BTC) holdings have grown at an impressive 6.3% rate.

📈 #Bitcoin long-term holders are adding to their holdings at the fastest monthly rate since April 2023, per @cryptoquant_com analysts.

Whales’ $BTC holdings grow at a 6.3% rate, despite increased supply from seized coins & Mt. Gox distributions.

Demand remains strong! 💪 pic.twitter.com/i2SsHoN565

— Satoshi Club (@esatoshiclub) July 13, 2024

This significant growth in whale holdings underscores strong demand for Bitcoin, even amidst increased market supply. The robust accumulation by long-term holders and whales indicates sustained confidence in Bitcoin’s value and future potential.

An upside breakout from the channel will signal the end of correction and the potential of a major rally.

Technical Indicator 

• EMAs: With an intraday gain of 1.68%, the Bitcoin price attempts to regain 200D Exponential Moving Average acquiring the initiation signal of trend reversal.
• Vortex Indicator: The VI+(blue) and VI-(pink) slope nearing a bullish crossover indicate the bullish momentum returning to the asset.