- Strong support levels and consolidation will allow Bitcoin to break out
- Due to this consolidation, Bitcoin will reach new all-time highs
- Miners are accumulating, breaking a month-long sell-off
- Whale buys $1.6 billion worth of BTC this morning
- Anti-FUD news is conspicuously aggregating
Everything appears to be going as planned for the bulls, as we can see below very strong bottoms formed in the summer months near 30k. With October being a historically strong month in the halving cycle, and Bitcoin not in the red (weakness) timeframe of the stock-to-flow, according to PlanB means “this 2nd leg of the bull market will have at least 6 more months to go.”
Bitcoin has broken through the 53k resistance level today, which is an extremely bullish sign–and we also have ultra-strong support levels at 40k. Analysts believe we may bounce down and retest 50k, but that would be a great buying opportunity as it is nearly certain Bitcoin will reach 58k in the coming weeks.
The moving averages are trending upwards, which indicates that the sell-off is all but complete. Seeing if we can hold above 54k will be the first test for the bulls, with support from the 20-day moving average being 47k, which may be re-tested. As you can see on the bottom half of the image, the accumulation/distribution line is extremely bullish. This upwards trend indicates just how many investors are continuing to accumulate Bitcoin. This means that dips are going to continue to be bought up.
According to data from Glassnode, Bitcoin miners are also accumulating. The China exodus caused very high sell pressure from miners, but we are seeing them beginning to buy back up after a few weeks of continued selling. Being that the miner accumulation has barely ticked up to the green shows that we are nowhere near the top. As you can see in the previous months, during bull runs, miner accumulation is a big driver towards positive price action. Miners and their behavior in the market have a major impact on the price of Bitcoin, more than many realize.
More bullish indicators continue; a mega whale this morning has just purchased $1.6 billion dollars worth of Bitcoin on the spot market. According to a tweet from the CEO of CryptoQuant, the massive buy was done in under 5 minutes. He went on to say that “This is more like whale buying, not cascade liquidations.” It appears that this whale realizes that the selling-off period is just about dead for this cycle. I would be surprised if there are any more “stories” about Bitcoin bans or anything other FUD that would cause huge sell-offs like we saw all summer. The bulls appear to be in full control.
There has been conspicuously good news published since the beginning of October, and just like when the movers and shakers publish FUD for their own purposes, they also publish anti-FUD for their own purposes, too. For example, just this week we had both the Chairman of the Fed Jerome Powell, and SEC Chairman Gary Gensler both publicly state that they have “no intention of banning cryptocurrency”.
— Bitcoin Magazine (@BitcoinMagazine) September 30, 2021
Moreover, we had George Soros announce he and his entities own crypto, U.S. bank launching a crypto custody service, Brazil planning to make Bitcoin legal tender, and Bank of America endorse crypto as an asset class, calling it “too big to ignore” while saying Bitcoin has “defied gravity”. All of the massive stories coming out in just a span of a few hours is almost hard to chalk to coincidence. Just months ago, many would think the sky was falling with all the FUD and anti-crypto news coming from regulators and wealthy elites.
We are seeing these movers and shakers show their true colors. We have always argued that most of these people behind the scenes are likely accumulating Bitcoin, for example, George Soros. Now they want a return on their investment. You can call this capitulation, but I would argue it is confession. The confession is that many billionaires and financial entities have had their hands in crypto for a long time, but haven’t declared it so they could accumulate more.
All of these data points: the technicals, the miner accumulation, the fundamentals, and the positive narrative being promoted in the news, point to a record Q4 bull run for Bitcoin, and crypto.
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