The pioneer cryptocurrency Bitcoin witnessed a shy slowdown in bullish momentum this week resulting in a price drop from $68460 to $65450. Other than an occasional market pullback, this 4.4% drop can be attributed to BTC distribution to creditors by bankrupted crypto exchange Mt. Gox. However, the broader trend remains bullish as Bitcoin continues to witness significant inflow from Spot ETFs and Miners managed to rebound from the capitulation trend. Is a new high coming in August?
Bitcoin Miners Resurgence Signals Major Breakout From 4 Month Consolidation
An analysis of the daily chart shows the Bitcoin price consolidation for the past 4 months amid the broadening wedge pattern. In theory, this chart setup signals market uncertainty with two divergence trendlines acting as dynamic resistance and support.
Interestingly, the ongoing recovery in Bitcoin price initiated from the pattern’s lower trendline Amid the early July reversal. The bullish turnaround uplifted the asset 23% to trade at $65937, while the market cap jumped to $1.3 Trillion.
With sustained buying, the BTC price eyes a 7% surge before challenging the overhead trend of the wedge.
In a recent highlight, the CEO of CryptoQuant Ki Young Ju marked Bitcoin still in an accumulation phase. As per on-chain data, 358,000 BTC have moved to permanent holder addresses in the past month.
#Bitcoin is in an accumulation phase.
Over the past month, 358K BTC has moved to permanent holder addresses. In July, global spot ETF inflows were 53K BTC.
Though not all remaining BTC is in custody wallets, whales are clearly accumulating. And it’s an unprecedented level. pic.twitter.com/Cyl2ZVhIIX
— Ki Young Ju (@ki_young_ju) July 24, 2024
While July also saw 53,000 BTC inflows into global spot ETFs. This unprecedented accumulation by whales and long-term holders indicates strong confidence in Bitcoin’s future value.
Another metric that highlights the undervalued state of BTC is Hash Ribbons. This tool tracks the 30-day and 60-day moving averages of Bitcoin’s hash rate to identify periods of miner capitulation and recovery.
A recent bullish crossover between these MA slopes that Bitcoin miners are recovering from capitulation, a classic buy sign. This signal is crucial, especially following Bitcoin’s fourth halving event, which traditionally leads to a supply shock and potential price increase due to reduced miner rewards.
Thus, the BTC price forecast shows a better opportunity to breach the overhead trendline and signal uptrend continuation. The post-breakout rally could push the asset to a near-term target of $90000.
Technical Indicator:
- Exponential Moving Average: The BTC price back above daily EMAs (20, 50, 100, and 200) hints the buyers strengthening their grip over this asset.
- Moving Average Convergence Divergence: A bullish crossover between the MACD (blue) and signal (orange) lines highlights an active recovery trend.
The post Bitcoin Gear Up for $80k Rally Amid Miners Recovery and Whale Buying appeared first on CoinGape.
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