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Our analysis of the situation
Bitcoin (BTC) price burst through resistance, surging by over 10 percent last week to test the $67K level. Speculations are rife that the leading cryptocurrency is gearing up for another all-time high (ATH) beyond $73k, fueled by surging whale demand and a bullish trend that has seen the digital coin consistently closing above the daily 50 Moving Average (MA) for the past six days.
Whale Action and Institutional Demand
Market intelligence platform Santiment's on-chain data reveals the voracious appetite of Bitcoin whales, who have absorbed a significant dump from short-term holders, with small Bitcoin wallets decreasing by over 182k units last week. Notably, Hong Kong-based spot Bitcoin ETFs recorded inflows of about $244 million in total net assets, while the US-based spot BTC ETFs accumulated more than 14k Bitcoins, signaling intensified interest from both retail and institutional investors.
Heightened Institutional Appetite
Bitcoin miners have only created around 520 units last month, highlighting the heightened demand from institutional investors. Notably, a single entity swooped in to purchase over 16,445 Bitcoins, worth more than $1.1 billion, in the past 24 hours, with another whale aggressively accumulating more than $106 million worth of Bitcoins in the same period.
Projected Targets and Altcoin Market Significance
With Bitcoin price rebounding strongly and confirming a reversal pattern via an inverted head and shoulder (H&S) formation, experts anticipate a rally towards a new ATH of around $74,747. Additionally, the weekly Relative Strength Index (RSI) suggests a further uptrend, with Bitcoin's dominance on the weekly chart hinting at an inevitable crypto cash rotation to the altcoin market.
Conclusion
As Bitcoin's dominance prepares to give way to a surge in the altcoin market, the coming months promise a dynamic shift that may see the altcoin industry overshadowing Bitcoin. As such, crypto traders are advised to keep a close watch on altcoins as they may emerge as the ultimate frontrunners, surpassing Bitcoin's market cap of over $1.3 billion.
In conclusion, Bitcoin's meteoric rise, fueled by heightened whale demand and institutional accumulation, sets the stage for a heady bitcoin run to a new ATH, with the altcoin market poised for a potential dominance shift.
Stay tuned for more exciting insights and updates in the cryptocurrency space!
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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