The constant volatility of the Bitcoin market has forced analysts to repeatedly change their lens from bearish to bullish and vice versa. Different market indicators, metrics, and analyses always tend to point in different directions, often flaming ongoing FUDs. At the time of writing, following months of bullish movement on the charts, the asset appeared to be in an extended period of consolidation.
Such signs have led to whales and analysts turning away from the cryptocurrency while presenting their extremely bearish sentiments too. An analyst and Bitcoin whale who goes by the name of Mr. Whale on Twitter recently took to the platform to dampen the hopes of many investors by claiming that the “bull market is over.”
Bitcoin’s inability to make new highs in 80+ days is confirmation that the bull market is over.
Never in any bull market in Bitcoin’s entire history have we corrected for this long, then made new highs in the same year. pic.twitter.com/fhh4wlwoXE
— Mr. Whale (@CryptoWhale) July 5, 2021
However, that couldn’t be farther from the truth. Looking at historical data would suggest that the analyst’s claim of BTC not ever reaching a new ATH after an extended consolidation phase within a bull run is false.
In fact, there have been periods much longer than the 80 days Mr. Whale mentioned in his tweet where a multi-month correction period was followed by higher highs that were never touched before.
Source: Twitter
During the 2013 bull run, one of the first of its kind, BTC touched a new ATH of $234.52 from $32 in just over a month. However, in the following 7-month window, it traded between its lowest level at $66.83 and highest level at $192, which was a drop of over 75% from its erstwhile valuation.
History remembers that those who remained bullish at the time reaped the benefits of BTC suddenly exploding to $1113 within by November that year. It further went on to hit a new ATH of $1242 the next month, before that bull cycle came to a close.
While the initial stall in the ongoing rally was caused by a sell-off initiated by market whales, apart from the FUD created by China and Elon Musk, this seemed to be undergoing a reversal as well. The amount of Bitcoin held by whale entities noted an increase of 80,000 to 4.216 million BTC on Friday, the highest level since May, leading to a price surge of 5% over the weekend.
In a recent tweet, on-chain analysis company Santiment stated,
“Bitcoin whale addresses holding between 100 to 10k BTC kicked off July with a 60k BTC accumulation spike, the highest daily spike of 2021. These addresses hold 9.12M coins combined after holding 100k less BTC just 6 weeks ago.”
The initial surge last year was initiated by these whales whose buyouts had been correlated with the rise in price. Re-accumulation by these whales point to a possible bottom being reached by the asset and another major rally could be on the charts.
The number of whales itself reached a three-week high of 1,922 during this period, suggesting that sentiments are turning bullish once more.
Source: Twitter/Glassnode
Capital inflows into digital assets, and especially Bitcoin, also reached a 5-week high, as shared in another report by CoinShares. Its total inflows amounted to $38.9 million as it became the ninth-most valuable asset in the world on Saturday, with a total market value of $648 billion.
If that is not enough, a Wykoff accumulation was recently highlighted in a Rekt. Capital analysis for BTC. The crypto could be seen forming and jumping higher lows as it reaches new resistance levels. This is the first time that a Wykoff accumulation has formed at the top of a bull run, one which leads to markups and possible price surges. More can be read on the current accumulation here.
Finally, even after continuous lows and recoveries, BTC has held its own by hovering near the $34,000 support level and not breaching its price channel over the past month. It fell by almost 50% in the month of May after touching an ATH of over $60,000.
Even though it did momentarily breach the $30,000 level, it soon climbed to its press time level, one which has been held for a while now.
