Bitcoin price supported by whales inches closer to $35,000, but it needs this to sustain above it

Bitcoin price might be doing well for itself, which is evident in the recent moves of the whale addresses. However, the cryptocurrency is still likely to continue its uptrend thanks to certain factors.

These factors include the hype of spot Bitcoin ETF approvals by the Securities & Exchange Commission (SEC), the potential Quantitative Easing, as well as the upcoming halving event. However, what many investors are missing is how their optimism could get crushed.

Daily Digest Market Movers: Bitcoin price may not impress until 2025

Bitcoin price trading near $34,500, boosted by the mid-October rally, has increased the hopes of many investors that a bull market is on the verge of beginning. This sentiment is being fueled by a couple of other factors as well. However, while green candlesticks are in BTC’s future, they might take a bit longer to arrive than investors are anticipating.

The general narrative is that Bitcoin price shoots up in the leadup to a halving and/or right after it. While that stands true for a short-term outlook, the towering gains that investors are expecting will likely arrive a year later. This is based on historical observations wherein a top was formed a year after the first halving and 18 months after the second and third. 

Following the first halving in BTC’s history, the top was noted after Bitcoin price increased by 539X. Similarly, tops for the second and third halving were observed after BTC shot up by 112X and 21X, respectively.

Bitcoin growth post-halving

Such growth cannot be expected this time around, given the present value of Bitcoin. Even a 21X growth would place the price of 1 BTC at $724,500. At the most, the top would be seen as the cryptocurrency marking fresh all-time highs for which Bitcoin would need to note an almost 90% rally. This may not take place until mid-2025 since new all-time highs normally come more than two years after market bottoms.

But the optimism of Bitcoin price breaching $40,000 is pushing investors toward acting bullish. This sentiment is observed among large wallet holders like whales, too. On-chain data shows that over the past week, Bitcoin whales have added 18,924 BTC to their wallets, worth close to $652 million at the moment.

Bitcoin whale net flows

Thus, bullish actions might act as a catalyst for the cryptocurrency going forward.

Technical Analysis: Bitcoin price short-term outlook

Bitcoin price hovering above the crucial support level of $33,901 is exhibiting mixed signals at the moment. While the general consensus following the 35% rally over the past two months is that BTC might see some sideways movement or correction until the market cools down, the sentiment is highly bullish, perching on the probability of spot Bitcoin ETF approvals.

This development could bolster a rise to $36,833, the reclaiming of which as a support level could send Bitcoin price off toward $40,000.

BTC/USD 1-day chart

But if this support line is invalidated, BTC could see a drawdown to $31,507. Falling through this line would invalidate the bearish thesis and result in Bitcoin price dropping below $30,000 to tag the 50-day Exponential Moving Average (EMA) at $29,629.