Bitcoin price retests $65k; thanks to whales and sharks

Bitcoin has recently revisited the crucial resistance level of $65,000, propelled by significant accumulation from whales and sharks, along with robust technical indicators.

With a rise of over 21% from its lowest point this month, Bitcoin has entered a technical bull market. According to Santiment, this upward movement is primarily driven by heightened accumulation among larger investors.

MicroStrategy, the largest corporate holder of Bitcoin, has been leading the charge in Bitcoin acquisitions. Earlier this month, the company purchased coins worth $458 million, increasing its total holdings to 252,220.

Institutional investors are also ramping up their Bitcoin purchases. Recent data indicates that all funds have experienced inflows for five consecutive days, with net inflows exceeding $600 million this month.

These developments are linked to declining interest rates in various countries, an expanding global money supply, and recent stimulus initiatives from the Chinese government, which plans to inject $142 billion into the economy. Together, these factors have fostered a risk-on mentality among investors, as reflected in the rising fear and greed index.

Additionally, Bitcoin is responding to the escalating U.S. public debt, which has surpassed $35.4 trillion, with annual interest payments approaching $1 trillion. Traders view Bitcoin and gold as safer alternatives to hedge against default risks.

On the technical front, Bitcoin’s price has remained stable, benefiting from positive indicators. It has formed an inverse head and shoulders pattern, avoided a death cross, and the Relative Strength Index is trending upward, signaling building momentum.

However, Bitcoin still faces challenges. A definitive bullish breakout will only be confirmed if it rises above the upper boundary of the descending trendline that has connected its highest swings since March.