- Bitcoin price may consolidate between $20,800 and $21,800 ahead of a significant breakout.
- A gradually rising exchange outflow volume hints at the weakening selling pressure amid fresh investor optimism.
- Whales are back to accumulating Bitcoin – suggesting that the end of the bear market is nigh.
Bitcoin price is playing psychological games on investors and traders. Some believe that the largest cryptocurrency has bottomed but lacks a catalyst to sustain an uptrend due to various uncertainties in the global economy.
On the other hand, another section of investors says that the Bitcoin price downtrend is far from over, citing June lows as potential support while not ruling out a crash to downhill levels between $12,000 and $14,000.
Are whales backing a Bitcoin price rebound?
Bitcoin price has corrected roughly 68.9% from its all-time high of $69,044. Ideally, the flagship cryptocurrency retraces by approximately 75 to 82% from its historical high in a bear market. For instance, following the 2017 bull run, BTC hit rock bottom at around $3,800 in early 2020 before building a rally to the record high in November 2021.
According to on-chain data from Glassnode, whales (large volume holders) have started accumulating BTC as the bear market nears its end. The total transfer volume from exchanges peaked at 137,390 in July – when Bitcoin price recorded its best performing month in 2022.
Although the turbulence in the market since the beginning of August disrupted the whales’ buying spree, accumulation is expected to keep rising toward the end of the year. In other words, investors tend to withdraw their assets from exchanges when they are optimistic the market will recover. This may help Bitcoin price build momentum out of the $1,000 range channel and chart its way to $28,000.
-637969544008952441.png)
Bitcoin Exchange Outflow Volume
At the same time, addresses with 1,000 and more BTC recently cooled off from the downtrend at 2,134. Recovery appears to be underway at the time of writing, with the metric holding at 2,145 addresses in this cohort. A bullish breakout may emanate from support at $20,800, changing the course for Bitcoin price to sail north.
-637969543945987777.png)
Bitcoin Addresses With >1,000 BTC
The Moving Average Convergence Divergence (MACD) is beating the drums for a potential bullish impulse. A buy signal confirmed on Sunday adds credence to the optimistic outlook. Traders will uphold the uptrend as soon as the MACD crosses into the positive region (above the mean line).
BTC/USD daily chart
Weak traders may consider exiting from their positions at two key levels – the 50-day Simple Moving Average (SMA) and the seller congestion at $22,400. In addition to uncertainties associated with a bear market, a bear flag pattern forms on the same four-hour chart. A break below the pattern would validate another downtrend, forcing Bitcoin price to seek support at $17,250.
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