Bitcoin (BTC) Price Close to $64K amid Rising Demand from Whale Investors

Coinspeaker
Bitcoin (BTC) Price Close to $64K amid Rising Demand from Whale Investors

Following the first Fed’s rate cut since the Covid-19 pandemic, Bitcoin BTC $63 445 24h volatility: 1.1% Market cap: $1.25 T Vol. 24h: $30.51 B price rallied over 7 percent last week to close at a crucial resistance level of around $64K. The flagship coin, with a fully diluted valuation of about $1.34 trillion and a daily average traded volume of about $26.6 billion, is on the cusp of a major bullish uproar after being trapped in a bearish consolidation in the past six months.

In the daily time frame, BTC price has experienced a significant resistance level of about $64.2K, the peak of August, which also coincides with the 200-day Moving Average (MA). As a result, a consistent close above the 200-day MA and $64K level in the coming weeks will guarantee a rally above $71K.

However, a possible retrace below $60K could happen before the onset of the macro parabolic rally.

The demand for Bitcoin among institutional investors has continued to grow exponentially in the recent past. With the correlation between Bitcoin and gold being positive in the past years, more long-term investors continue to bet on the former’s inevitable rally. In the past few weeks, gold price has rallied exponentially to reach a new all-time high of above $2,602 on Monday during the early European session.

Long term Bitcoin holders are aggressively buying!

Over the past 2 months, long term holders have accumulated more BTC than in any other period in the past 3 years.

Someone knows something… pic.twitter.com/yaKeYllJZO

— Nic (@nicrypto) September 22, 2024

According to on-chain data analysis, long-term investors have accumulated more Bitcoins in the past two months, than the past three years. As a result, the supply of Bitcoin in centralized exchanges has exponentially declined in the past six months, from 2.7 million units in March to about $2.3 million today.

The approval of spot Bitcoin ETFs in the United States has played a crucial role in the rising demand for Bitcoin by long-term investors. In the past two weeks, the US spot BTC ETF issuers, led by Fidelity’s FBTC, accumulated more than 13k Bitcoins, worth nearly $800 million.

At the end of last week, the US Securities and Exchange Commission (SEC) approved the listing and trading of options on BlackRock’s IBIT, which will play a crucial role in its mainstream adoption.

Last week, MicroStrategy Inc (NASDAQ: MSTR) announced the completion of an oversubscribed offering of $1 billion, thus purchasing an additional 7,420 Bitcoins, at around $61,750 per unit. Consequently, MicroStrategy now holds a total of 252,220 Bitcoins, worth over $15 billion.

Bitcoin price is expected to register an impressive rally in the fourth quarter, and perhaps rally towards $100k by the end of the year. However, more investors are diversifying their investments into the altcoin industry, ahead of the anticipated altseason.

Furthermore, Bitcoin dominance has been showing early signs of macro reversal in the near term after forming a rising wedge in the past few months.

Bitcoin (BTC) Price Close to $64K amid Rising Demand from Whale Investors