Bitcoin has seen some positive momentum this week and is testing the resistance level of $65,000 once again. This action is largely thanks to increased buying by larger players, often referred to as “whales” and “sharks,” combined with some strong technical factors. It’s an interesting time for Bitcoin, especially as it’s now up over 20% from its lowest point this month, signaling the start of what many are calling a technical bull market.
According to data from Santiment, the accumulation by these big players has been one of the main reasons behind Bitcoin’s upward movement. And leading the charge is MicroStrategy, the biggest corporate Bitcoin holder out there. Earlier this month, they added another $458 million worth of Bitcoin to their stash, bringing their total holdings to 252,220 coins.
https://twitter.com/santimentfeed/status/1839320661132751234
Institutional Investors Fuel the Rally
Institutional investors are also jumping in. Over the past few days, funds have seen steady inflows, with net purchases exceeding $600 million just this month. It seems like Bitcoin’s becoming a preferred choice for institutions looking to expand their holdings.
Economic Shifts Add to Bitcoin’s Appeal
Several other factors are contributing to this bullish sentiment. Lower interest rates in many countries, an increase in global money supply, and China’s decision to inject $142 billion into its economy have all contributed to investors feeling more comfortable taking on risk. The rising fear and greed index, a shown below, reflects this shift in sentiment, showing that people are leaning more toward greed — often a sign that confidence is high.
Bitcoin Fear and Greed Index is 61 — Greed
Current price: $65,181 pic.twitter.com/XqsSwNCt1t— Bitcoin Fear and Greed Index (@BitcoinFear) September 27, 2024
On top of that, the rising public debt in the US is catching the attention of traders. The country’s debt has climbed to over $35.4 trillion, and annual interest payments are nearing $1 trillion. With this kind of financial pressure, many believe that assets like Bitcoin and gold are safer bets, particularly as a hedge against the risk of a potential default.
From a technical standpoint, Bitcoin’s charts are looking solid. It recently avoided a death cross pattern, which could have been a negative signal, and instead formed an inverse head and shoulders pattern, typically a bullish sign. The Relative Strength Index (RSI) is also pointing upward, showing that momentum is on the rise.
Yesterday, Bitcoin investor and entrepreneur Lark Davis said that all signs are indeed pointing to a major breakout. All in all, it seems that the pieces are coming together for Bitcoin right now and that we might be having the long anticipated Q4 pump. At the time of writing, Bitcoin is moving hands at $64,933, up 2.74% over the last 24 hours, according to CoinMarketCap data.
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