Bitcoin (BTC) price hit a high of $18,318 in the last 24 hours. Despite a correction in the BTC price after the U.S. Federal Reserve’s 50 bps rate hike, the sentiments remain positive. On-chain data also indicates a decline in Bitcoin selling pressure by whales and miners.
With the Bitcoin (BTC) price breaking above the $18K resistance level and the crypto market FUD slowly coming to an end, experts suggest an upcoming bulls takeover for a rally to $20K.
On-Chain Data Indicates Decreasing Selling Pressure
According to on-chain analysis, the Bitcoin (BTC) Spent Output Value Bands – All Exchanges metric indicates that the amount of whale deposits on crypto exchanges is decreasing.
The data helps determine the changes in Bitcoin price based on the behavior of whales depositing 1K to 10K BTCs into crypto exchanges. Historically, whales selling their BTC holdings by sending them to crypto exchanges resulted in the formation of Bitcoin bottom.
Bitcoin Crypto Exchange Inflow. Source: CryptoQuant Despite the FTX crisis being more severe than the Terra-LUNA crisis, whale deposits to the crypto exchanges are decreasing. In fact, the risk of the upcoming miner crisis could vanish if Bitcoin price continues to show bullish momentum.
On-chain data also indicates an increase in Bitcoin long-term holders. Therefore, a selloff due to miner capitulation could be a long decline than a short panic sell. The percentage of total mined BTCs held for over six months was 78.37%, almost close to an all-time high.
Bitcoin (BTC) Price Enters Accumulation Cycle
Bitcoin is entering a pre-halving accumulation cycle after a year-long bear market that saw massive selloffs by whales and miners. In fact, institutional investors are expected to quietly buy the dip similar to the previous accumulation cycle of 2019-2020.
Ark Invest CEO Cathie Wood also expects a wave of institutional investors to jump in and buy Bitcoin and Ethereum. Cathie Wood remains bullish on Bitcoin hitting $1 million by 2030.
Technical analysis points out that a fall below $17k is now invalid and $17.5k is the new support level. Bitcoin price has its first daily close back above June lows.
Bitcoin Price in 4Hr Timeframe Bitcoin price will rally to the $19k resistance level first and then a pullback may occur. The current momentum suggests the BTC price will test $19K in December. The price is currently trading at $17,692.
