Is Bitcoin’s Bull Run Really Over?

The constant volatility of the Bitcoin market has forced analysts to frequently change their views from bearish to bullish and vice versa. Different market indicators, metrics and analysis always tend to point in different directions and often make the current FUD flare up. At the time of writing, the asset appears to be approaching a prolonged period of consolidation after months of upward movement.

Such signs have turned whales and analysts away from the leading cryptocurrency while showing their extremely bearish sentiment. Bitcoin analyst and whale Mr. Whale recently stated that “the bull market is over”. I said:

“Bitcoin’s inability to hit new highs for more than 80 days confirms that the bull market is over. In no bull market in the entire history of Bitcoin has the price corrected itself for so long and then hit a new high in the same year. “

Source: Mr. whale

However, that doesn’t seem right. A review of the historical data will show that the analyst’s claim that BTC will never hit new ATHs after a lengthy period of consolidation during the bull run is not true.

In fact, there were periods much longer than the 80 days that Mr. Whale mentioned in his tweet, where a multi-month correction was followed by higher peaks never seen before.

Source: Twitter

During the 2013 bull run, one of the first to demonstrate this, BTC hit a new ATH of $ 234.52 from $ 32 in just over a month. However, over the next 7 months it traded between a low of $ 66.83 and a high of $ 192, a decrease of more than 75% from its original price.

Those who remained optimists at the time benefited from BTC’s sudden explosion to $ 1,113 in November that year and hit a new ATH of 1,242 the following month before the cycle’s price spike ended.

In the current bull run, the sell-off triggered by whales in combination with the Chinese FUD and Elon Musk caused stagnation. However, the situation seems to be changing. The amount of Bitcoin held by whale entities rose from 80,000 to 4.216 million BTC on Friday, its highest level since May, resulting in a price increase of 5% over the weekend.

In one tweets Recently, on-chain analytics firm Santiment stated:

“Bitcoin whale addresses holding between 100 and 10,000 BTC started a massive surge of 60,000 BTC in July, the highest daily gain in 2021. These addresses hold a total of 9.12 million coins, after being 6 weeks ago had held less than 100,000. “

Distribution of supply (purple) and Bitcoin price (green) | Source: Santiment

The initial rally last year was caused by these whales starting to buy in correlation with the uptrend. Whale replenishment suggests a possible bottom and another big rally could appear on the chart.

Additionally, whale numbers hit a 3-week high of 1,922 during that period, suggesting that sentiment is rising again.

Company-owned delivery with 1k-10k BTC balance | Source: Glassnode

Inflows into digital assets, and Bitcoin in particular, also hit a five-week high, as reported in another CoinShares report. Total inflows were $ 38.9 million as BTC became the world’s ninth most valuable asset on Saturday with a total market value of $ 648 billion.

As if that wasn’t enough, the Wykoff accumulation model was recently reviewed by analyst Rekt Capital shown. Accordingly, the leading cryptocurrency could make a higher bottom if it hits new levels of resistance. This is the first time Wykoff accumulation has formed at the top of a rally, which signals a positive trend.

In the end, BTC held its own even after continuous declines and rallies, hovering near the USD 34,000 support and not falling below the price channel after hitting an ATH last month despite a nearly 50% decline in May had reached over $ 60,000.

At the same time, the price also briefly fell below the $ 30,000 mark, but soon rose back up and stayed around the $ 33,000-34,000 mark.

You won’t want to trade other whales

In one Video Recently analyst and trader Scott Melker also admitted that whales pile up, which is a good sign.

“It’s very exciting to see whales piling up again. In a free market like this one would like to be with the whales and not act differently. “

Melker points out that the more FUD the market has, the more likely whales are to cluster. This can cause the price of the asset to rise and eventually end its bearish cycle.

This new cluster of whale entities is also mentioned by analyst Willy Woo. In retrospect, there is no denying that the wealthy investor played a leading role in bringing the price of Bitcoin to $ 60,000 in just 5 months.

Company-owned delivery with 1k-10k BTC balance | Source: Willy Woo

The recent accumulation of whales could reinforce the argument that prices have bottomed out. Bitcoin is trading at $ 33,369 at press time, down 4% in 24 hours.

It is also interesting that whales were only sold 2 weeks ago and some prominent whales even talked about shifting profits from Bitcoin to ETH trading. However, given the whales’ renewed interest in Bitcoin, the positive signs seem to have finally returned with the crypto king.

Minh Anh

According to AZCoin News

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