- BTC has experienced increased volatility over the past month.
- Despite the decline, new whales continue to enter the market as old ones hold their position.
Bitcoin [BTC] has seen one of the most dramatic Septembers so far. Historically, September is associated with a bearish market. However, over the last week, BTC has attempted to defy this historical pattern.
In fact, the crypto has recorded a local high of $60670 from a low of $52546. At press time, Bitcoin was trading at $58819. This marked a 3.19% increase on weekly charts.
Despite this attempt to break out, the last three days, have seen BTC lose all the recent gains to hit a local low of $57488.
Such market behavior indicates bulls are attempting to take over the market, but they are not strong enough to displace the bears.
This struggle is well evidenced by the current whale’s activity as they attempt to regain market confidence.
This phenomenon was observed by CryptoQuant analysis, as they suggested old whales have continued to hold while new ones enter the market.
Whales continue to hold
According to CryptoQuant, new whales were actively buying despite the decline, while old ones continued to hold.
Source: CryptoQuant
These traders are accumulating at a base cost of $62,038 which was down by 3.28%. This shows their confidence in the long-term value of BTC.
On the other hand, Old Whales (above 155 days) continued to hold their positions. Holding behavior suggested they anticipate prices will spike in the near future.
The fact that they are not willing to close their positions to avoid further losses, shows strong confidence.
These old whales are holding their positions from a base cost of $27,843 which was up by a massive 115.54%.
Although they are in a position of major realized profits, old whales continue to hold, as they anticipate further price increases. This is another classic bullish signal.
Besides whales, miners and Binance traders continue to hold. Although miners at a Base cost of $43179 are 38.19% in profit, there are no signs of mass selling suggesting they may hold are selling in phases.
Generally, new whales and Binance traders are actively in the market buying while old whales continue to hold their positions.
This combination indicates a potential for further price increases and a sign of overall market maturity.
What BTC charts indicate
Undoubtedly, although BTC is experiencing a bearish market sentiment, the prevailing conditions could set the crypto for massive gains.
Source: CryptoQuant
For starters, the NVT Golden Cross has experienced a strong upswing over the past week. An NVT golden cross indicated that the 50-day moving average of NVT has crossed above long long-term (200-day MA).
This was a sign that prices were likely to enter a bullish phase as the market cap rises in relation to the network’s transaction volume.
Thus, investors seemed to be expecting further price appreciation based on network fundamentals and market sentiment.
Source: CryptoQuant
Additionally, Bitcoin’s Average Dormancy has been declining since the 29th of August, from 52.89 to 13.5 at press time.
A decline in average dormancy suggested that long-term holders are not selling their assets, although term holders are selling.
This showed that the market was in the accumulation phase as short-term holders sold to long-term, holders as they expected prices to appreciate in the future.
This was another bullish signal, as long-term holder’s accumulation suggested confidence in the asset’s future price.
Source: Coinglass
This demand for BTC’s long positions was further supported by a positive OI-weighted funding rate.
A positive Open Interest Weighted Funding Rate indicated that the market had a higher demand for long positions than shorts.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
Therefore, as noted by CryptoQuant analysts, Bitcoin was enjoying increased market favorability among long-term holders.
This was a positive market sentiment as they expected further price gains. Thus, if this positive sentiment is maintained, BTC will break out of the $61182 resistance level that has proven stubborn.
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