Bitcoin’s ‘smash through $50K’ can happen sooner if…
Bitcoin’s price after a firm march towards recovery has started to consolidate ahead of the $50K mark. As it continued to trade at $48,463 at press time, the market capitalization stood at $911 billion, down by about 2% over the last day. The current rally and subsequent consolidation have garnered a lot of attention from Bitcoin traders and whales, more so from whales.
The whale movement has been pretty exciting as large sums of Bitcoin have been flowing between anonymous wallets, along with exchanges. According to the Whale Alert tweets, on August 28 alone, around 800 BTC ( worth more than 39 million USD) was transferred from an unknown wallet to Binance. Following this, another, almost billion-dollar worth of BTC was transferred, hitting the total worth of transactions to over $3 billion.
After more than a year and a half since the last halving, this cycle according to many had already reached its bottom, and recovery from there was well underway. Analytics page Ecoinometrics drew an interesting parallel between the 2013 market cycle and the current one charting out similar trajectories for Bitcoin. He said,
“We can hope that there will be some repeat of 2013 when BTC came out strong from a -60% drawdown in the middle of the post-halving bull market.”
If the aforementioned happened then this will probably be the second-longest run that Bitcoin ever experienced outside of a multi-year bear market. But what are the chances of the same?
Bitcoin will go up if…
Apart from the large inflows of 1.68 million BTC in a single day followed by an increased whale activity in terms of accumulation everything else was largely unchanged. Furthermore, whales had started to distributed coins after $45K. Seemed like whales were trying to position themselves better for an exit looking at the transfers from wallets to exchanges.
Other than that, another interesting trend was that small fish were accumulating coins faster. Ecoinometrics data also pointed out that if whales start ticking, a smash through $50k can be expected sooner. While the move for now looks inevitable it’s only a matter of time.