Bitcoin whales — large-volume investors — have significantly slowed their rate of accumulation, raising concerns about the cryptocurrency’s ability to reach new all-time highs. According to a report by CryptoQuant, these investors are now adding just 1% to their Bitcoin (BTC) holdings per month, compared to a 6% increase seen earlier this year.

Bitcoin whale holdings % monthly change (screenshot). Source: CryptoQuant

The report highlights that a monthly growth rate above 3% in whale holdings has historically driven Bitcoin prices higher. However, the current slowdown suggests the necessary demand to push Bitcoin to new heights is lacking. This decline in whale activity contrasts with the rapid accumulation observed before BTC’s previous all-time high in March.

Adding to the sluggish demand, spot Bitcoin exchange-traded funds (ETFs) in the United States have not provided the necessary boost. Daily net inflows to spot ETFs have dwindled to a fraction of what they were in March, with recent averages at just 1,300 BTC per day. CryptoQuant suggests that a recovery in ETF purchases is essential for driving overall Bitcoin demand and potentially triggering a price rally.

US spot Bitcoin ETF change in BTC holdings (screenshot). Source: CryptoQuant

While whale accumulation has slowed, permanent holders — those who buy and never sell BTC — have shown no hesitation in increasing their exposure. This group has been accumulating Bitcoin at record levels, with a monthly growth rate of 391,000 BTC, outpacing even the strong demand seen in early 2024 when Bitcoin’s price exceeded $70,000.

Bitcoin permanent holder demand (screenshot). Source: CryptoQuant

However, more speculative investors appear cautious after Bitcoin’s dip to six-month lows in August. Many recent buyers are nursing unrealized losses, as their cost remains above the spot price, which hovers around $59,000. Despite recent price gains, Bitcoin remains under pressure as it struggles to regain upward momentum.

Bitcoin’s price has surged towards $61,000, buoyed by shifting macro sentiment and a rally in equities markets. The leading cryptocurrency gained 2.5% on Aug. 20, reaching a local high of $61,424 on Bitstamp. This increase reflects growing optimism among investors as broader financial markets show signs of renewed risk-taking.

Macro Environment Supports Bitcoin’s Rise

Market analysts suggest that Bitcoin’s recent price surge may be linked to a broader “risk-on” sentiment in global markets. According to a report from trading firm QCP Capital, corporate share buybacks have increased significantly this year, hitting $1.15 trillion. This renewed appetite for equities has created a positive momentum that could extend to cryptocurrencies like Bitcoin.

BTC/USD 1-hour chart. Source: TradingView

QCP Capital also noted that investors are anticipating further clarity on U.S. monetary policy at the upcoming Federal Reserve symposium in Jackson Hole. Historically, events like this have influenced market sentiment, particularly in the equities sector. If the Fed signals a more dovish stance, it could further boost Bitcoin and other risk assets.

Bitcoin Faces Key Resistance Levels

Despite the recent gains, Bitcoin continues to struggle within a downward-sloping range. Analysts remain cautious, with many eyeing the key resistance level near $70,000. Mark Cullen, a popular trader, highlighted Bitcoin’s recent price movements, noting that it has pushed through the $59,500 level but still faces challenges in maintaining momentum above $60,000.

Source: Tom

Trader and analyst Rekt Capital pointed out that Bitcoin’s price has followed a similar pattern since reaching its all-time high in March. The next crucial step, according to Rekt Capital, is for Bitcoin to confirm a weekly close above the bottom of its trading channel, which would signal bullish momentum.

Short-Term Consolidation Likely

While the overall sentiment is positive, some analysts expect Bitcoin’s price action to remain within its current range for the short term. Credible Crypto, another prominent trader, predicted that Bitcoin might continue to consolidate around the $56,000 to $60,000 range before making a decisive move.

BTC/USD chart. Source: Mark Cullen

The ongoing sideways movement suggests that the market may need more time to build momentum before challenging higher resistance levels.

Bitcoin is showing signs of an impending upward price movement as it nears the crucial $60,000 level. Despite the lack of traditional market activity over the weekend, BTC/USD steadily climbed, reaching local highs of $60,271 on Bitstamp on August 18.

Bullish Indicators Point to Further Gains

Analysts are observing key technical indicators that suggest Bitcoin could be on the verge of another price surge. One such indicator is the Ichimoku cloud on daily timeframes, which has shown a bullish crossover. Popular trader Titan of Crypto highlighted this development, noting that Bitcoin has closed a candle above the Tenkan line and is now targeting a Kijun reclaim. This TK crossover is a classic signal traders watch for, indicating a potential breakout.

BTC/USD 1-hour chart. Source: TradingView

In addition, the moving average convergence/divergence (MACD) indicator has also flashed a bullish signal. The MACD, which measures the relationship between two moving averages, is often used to identify potential buy and sell points. According to Titan of Crypto, these combined signals give Bitcoin a strong chance of “pumping again soon.”

Key Levels to Watch for a Breakout

Another prominent analyst, Rekt Capital, emphasized that Bitcoin’s next target should be reclaiming the $60,600 level by the weekly close. Achieving this would signal the end of its recent downturn and confirm its return to the post-halving “reaccumulation range.” Rekt Capital explained that surpassing this level would eliminate the downside deviation seen earlier in August, setting the stage for further gains.

BTC/USD 1-day chart with Ichimoku cloud data. Source: Titan of Crypto/X

Looking ahead, Rekt Capital pointed out that Bitcoin is currently around 125 days post-halving. Historically, Bitcoin tends to enter a “parabolic phase” approximately 160 days after the halving. If this pattern holds, Bitcoin could experience a significant breakout by late September.

As Bitcoin hovers around key technical levels, traders and analysts are closely watching for signs of the next big move. If these bullish indicators play out, Bitcoin could be on the brink of a new upward trajectory.

Bitcoin’s recent rebound of around 18.50% after hitting a six-month low of approximately $49,755 has sparked optimism among investors. However, there are signs that the cryptocurrency may undergo further correction in the coming weeks. A key factor is the high percentage of long-term Bitcoin holders currently in profit. As of August 16, nearly 83% of these investors, who have held Bitcoin for more than 155 days, are in a profitable position. Historically, such conditions often lead to profit-taking, which could push BTC prices lower.

BTC/USD daily price chart. Source: TradingView

Technical Patterns Suggest Potential Downside

Bitcoin’s price movements are currently forming an ascending triangle pattern, which can indicate either a reversal or continuation of a downtrend. If Bitcoin fails to break above the resistance level at around $59,280 and instead breaks below the rising trendline, it could signal a continuation of the downtrend. In this scenario, Bitcoin’s price could fall towards the $50,000 level, which also serves as a psychological support point.

Bitcoin long-term holder 30-day average percent supply in profit. Source: Glassnode

Bullish Indicators Offer Hope for Recovery

Despite the risks, Bitcoin may not crash after all. Ascending triangles are typically bullish reversal patterns in a downtrend, meaning a successful close above the 50-4H EMA could propel Bitcoin toward the triangle’s upper trendline, around $59,240. If Bitcoin breaks above this upper trendline, it could trigger a rally towards $70,000.

BLX vs. Gold daily price chart comparison. Source: Charles Edwards

This bullish outlook is supported by Charles Edwards, founder of Capriole Investments, who notes that Bitcoin’s price movement often lags behind gold by a few months. With gold already breaking out of its consolidation phase, Bitcoin may follow suit.

Rate Cuts Could Boost Bitcoin

Moreover, potential interest rate cuts by the Federal Reserve could further enhance Bitcoin’s upside potential. Lower rates typically reduce the appeal of yield-bearing assets like US bonds, increasing the demand for riskier assets, including cryptocurrencies.

Bitcoin is holding onto the $55,500 support level, but concerns are growing among traders due to an increase in futures open interest and the emergence of a “death cross” on the BTC chart. This bearish signal, where the 50-day simple moving average (SMA) dips below the 200-day SMA, has traders on edge about potential further declines.

Institutional Investors Show Confidence Despite Sideways Action

Despite Bitcoin’s sideways price action in recent months, institutional investors remain confident, with more than 262 new firms investing in U.S. spot Bitcoin exchange-traded funds (ETFs) in Q2 2024. According to Vetle Lunde, a senior analyst at K33 Research, these investors have largely maintained or increased their positions. Bitwise CIO Matt Hougan highlighted that 44% of asset managers boosted their Bitcoin ETF holdings, while only 13% exited their positions.

Crypto market data daily view. Source: Coin360

Near-Term Outlook Turns Bearish

While the long-term outlook for Bitcoin remains positive, analysts are becoming more cautious in the short term. Cryptocurrency analysis platform Coinglass pointed out that the rising open interest in Bitcoin suggests there could be more room for a price decline. If Bitcoin fails to hold the $55,724 support, it could trigger a fall to $50,000.

Ethereum and Altcoins Under Pressure

Ethereum (ETH) also faces challenges, with the price of attempting to recover from support being nearly $2,500. However, ETH is expected to encounter strong selling pressure between the $2,772 and $2,850 levels. A failure to break through could increase the risk of a dip below $2,500.

BTC/USDT daily chart. Source: TradingView

Other major cryptocurrencies, including Binance Coin (BNB), Solana (SOL), XRP, and Dogecoin (DOGE), are similarly at risk of breaking down. Solana, for example, could drop to $130, and a breach of this level may see it retest the critical $116 support. XRP is locked in a battle near the $0.57 level, while Dogecoin struggles to stay above $0.10.

As Bitcoin and altcoins navigate these crucial support levels, traders remain cautious, keeping a close eye on market developments that could signal the next significant move.

Bitcoin is back in the accumulation phase, according to recent data, sparking optimism among analysts who foresee a potential price breakout. With significant resistance looming around $61,700, could this shift help Bitcoin recover above $66,000 by September?

Long-Term Holders Are Accumulating Again

Recent analysis reveals that Bitcoin’s long-term holders are once again in accumulation mode. On-Chain College, a well-known analyst, highlighted that the accumulation rate has reached its highest level since May 2023. Similarly, data from Glassnode indicates that the Accumulation Trend Score (ATS) has reached its maximum value of 1.0, signifying substantial accumulation over the past month.

Bitcoin long-term holder position change. Source: On-Chain College

This renewed interest in accumulation is significant, as approximately 25% of the total Bitcoin supply was acquired between the $58,000–$73,000 price range. This represents around $300 billion of Bitcoin’s market capitalization, according to Axel Adler, a verified CryptoQuant author.

Can Bitcoin Reach $66,000 by September?

Despite the recent accumulation, Bitcoin’s price dipped below $58,000 on 16 August, recording a 4.2% loss over the past week. However, technical analysts remain optimistic. Titan of Crypto, a respected technical analyst, pointed out that historically, the fourth month after a halving event has been bullish for Bitcoin, with prices often closing above the halving price. If this pattern holds, Bitcoin could see a bullish September, potentially surpassing $66,000.

BTC: Accumulation Trend Score. Source: Glassnode

However, popular analyst Rekt Capital noted that Bitcoin needs to break through significant resistance at around $61,700 first. Currently, Bitcoin is consolidating between resistance at $62,000 and support at $58,280. Overcoming the $61,700 barrier could trigger a broader price rally.

A move above $59,000 could also have a substantial impact on the market, potentially liquidating over $700 million worth of leveraged short positions. If Bitcoin’s price rises above $59,300, short liquidations could exceed $1 billion, adding further momentum to a possible recovery.

Bitcoin showed lackluster performance on August 16, as its price remained rangebound while gold surged to an all-time high. Despite avoiding a retest of $56,000 lows, Bitcoin’s inability to rally has left market observers unimpressed, especially as other assets, such as gold and equities, continue to outshine the leading cryptocurrency.

Bitcoin Struggles Amidst Market Gains

Data from  TradingView highlighted Bitcoin’s (BTC) limited movement within a $1,500 intraday trading range, failing to capitalize on positive market conditions. Filbfilb, the co-founder of DecenTrader, remarked on X that Bitcoin’s failure to respond to the good news is a concerning sign, especially as gold hit a new record high of $2,500 per ounce. While gold has risen 21% year-to-date, Bitcoin has gained 38%, but it still lags behind in recent market momentum.

BTC/USD 1-hour chart. Source: TradingView

Calls for Patience as Bitcoin Lags Behind

Despite Bitcoin’s sluggish performance, Charles Edwards, founder of Capriole Investments, urged patience, noting that Bitcoin’s recovery from its August lows has been slower than other asset classes. Edwards suggested that Bitcoin could eventually follow gold’s lead, citing historical trends where Bitcoin lags behind gold by around three months.

Source: Peter Brandt

Bitcoin’s Correlation with Stocks and Future Outlook

Benjamin Cowen, CEO of Into the Cryptoverse, pointed out that Bitcoin’s current divergence from the S&P 500 mirrors behavior seen in 2019 when the U.S. Federal Reserve last cut interest rates. Cowen predicts that the positive correlation between Bitcoin and stocks could return by 2025, a timeline that aligns with the broader market cycle.

S&P 500 vs. gold vs. BTC/USD chart. Source: Charles Edwards/X

While Bitcoin continues to struggle, longtime analyst Tuur Demeester warned that the cryptocurrency might not be out of the woods yet, suggesting that a pullback to $45,000 is possible if there is a significant selloff in the stock markets. As the market watches, Bitcoin holders are advised to remain cautious amidst ongoing volatility.

Bitcoin’s price saw a sudden drop on August 14, falling by 5% despite what was initially seen as positive news from the United States inflation data. The cryptocurrency initially surged to nearly $62,000 following the latest Consumer Price Index (CPI) print, which came in lower than expected, typically a bullish signal for risk assets like Bitcoin. However, the rally was short-lived, with BTC/USD quickly losing over $3,000 within just over an hour, plummeting below $59,000.

Traders Cautious Amid Market Volatility

The swift reversal caught many traders off guard, though some, like Daan Crypto Trades, had previously warned of erratic price movements around the release of US macroeconomic data. “CPI Coming in mostly at estimates. Pretty good and doubt this impact markets much in the end,” he commented, suggesting that the markets might have been set to move in their own direction regardless of the CPI results.

BTC/USD 1-hour chart. Source: TradingView

According to the latest data from CME Group’s FedWatch Tool, market participants still expect a small interest rate cut from the Federal Reserve at its next meeting in September. The Kobeissi Letter, a trading resource, noted that while lower headline inflation points to upcoming Fed rate cuts, these cuts could also lead to a resurgence in inflation in certain categories.

Outlook Remains Bearish, Potential Further Drops Expected

Looking ahead, some traders are eyeing lower levels as potential entry points for long positions. Roman, a popular trader on X (formerly Twitter), suggested that Bitcoin could drop another 10% from its current levels, possibly reaching $55,000 before stabilizing. He pointed out the lack of strong volume to support higher prices, indicating bearish price action.

Source: The Kobeissi Letter

“My plan has remained unchanged for the last week. Not seeing strength here for continuation upwards as we have bearish price action (low vol + price up),” Roman explained, underscoring the cautious sentiment among traders as Bitcoin faces ongoing market challenges.

Bitcoin (BTC) remained unfazed on August 13, as global markets reacted to significant macroeconomic developments. While Japan’s stock market experienced a full recovery from its historic crash earlier in the month, Bitcoin’s price action remained subdued, staying below the $60,000 mark.

Japan’s Nikkei 225 Recovers

The Nikkei 225, Japan’s leading stock index, closed at 36,232 points, marking a 3.45% increase on the day. This rise allowed the index to completely recover from its earlier record losses. The positive sentiment in Japan influenced U.S. equities as well, with the S&P 500 and Nasdaq Composite Index gaining 0.8% and 1.4%, respectively, within the first hour of trading.

BTC/USD 1-hour chart. Source: TradingView

The boost in U.S. markets was further supported by the latest Producer Price Index (PPI) data, which came in below expectations. This fueled speculation that the Federal Reserve might implement a larger 0.5% interest rate cut at its next meeting in September. Prior to the PPI release, markets had expected a smaller 0.25% cut.

Bitcoin’s Reaction Remains Muted

Despite the upbeat mood in traditional markets, Bitcoin showed little reaction. According to monitoring resource CoinGlass, the bid depth around the $58,000 level increased, indicating potential buying interest, while asks strengthened at $60,000 as the spot price inched higher.

Source: The Kobeissi Letter

Popular trader Daan Crypto Trades noted that while the PPI release caused some movement, it was not significant. He pointed out that similar patterns often occur with Consumer Price Index (CPI) data, which is due for release on August 14.

All-Time High Still Possible by September

Despite the current calm, some analysts remain optimistic about Bitcoin’s future price action. Michaël van de Poppe, founder and CEO of MNTrading, suggested that if Bitcoin breaks the $60,000 level, a new all-time high could be reached as early as September or October.

BTC/USDT chart. Source: Daan Crypto Trades/X

With key inflation data on the horizon, market participants remain cautious, closely monitoring developments for clues on future price movements.