The number-one cryptocurrency by market capitalization rebounded 2% over the past 24 hours and briefly reclaimed $81,000.
Some analysts think it may post a much more impressive short-term price increase, and a certain whale’s actions support the bullish thesis.
Sign of Strength and More
Several hours ago, X user Sweep noted that BTC had reclaimed its 50-day exponential moving average (EMA), backed by strong spot demand. This development suggests buyers are regaining control, with the analyst calling it “the first major sign of strength.”
Another bullish signal Sweep highlighted is the large amount of BTC leaving exchanges. The analyst said more than $1 billion of the cryptocurrency was withdrawn to self-custody over the past 24 hours, arguing that a “supply shock is coming.”
The big event today (October 28) likely to trigger volatility and hint at Bitcoin’s next move is the FOMC meeting. Experts project that America’s central bank will keep interest rates unchanged, while a surprise move could cause major turbulence.
As such, it is important to see how whales are preparing for the event. Max Crypto disclosed that one mysterious investor opened a $72.1 million long position on BTC with 30x leverage.
This has sparked speculation that the market participant may have insider information. After all, whales are often seen as sophisticated investors with more resources than the average retail trader. Of course, this doesn’t guarantee the cryptocurrency’s price will jump after the event.
Pullback Instead?
On the other hand, some analysts warn that the FOMC meeting could be followed by a BTC price correction. One example is Ali Martinez, who recently noted that Bitcoin’s initial reaction to previous Fed interest rate gatherings was often insignificant, with a clearer trend typically emerging over the following 24 hours and frequently persisting for at least a week.
He pointed to several factors that should make people cautious for the upcoming meeting. First, he said Bitcoin whales have recently realized around $156 million in profits, adding to potential selling pressure. Second, Martinez revealed these investors’ total holdings have fallen by 8,162 units in the last 24 hours, suggesting they are reducing exposure ahead of the event. Finally, the analyst said the Coinbase Premium index has plunged to around -0.17, one of its lowest readings since September.
“A negative premium means Bitcoin is trading cheaper on Coinbase than on Binance, suggesting weaker relative demand from US investors,” he stated.
In conclusion, Martinez said key support is near $81,000, where almost one million BTC previously changed hands, and warned that if it breaks, it could crash to as low as $67,000.
“To turn bullish, Bitcoin needs to clear $84,500, where roughly 620,000 BTC traded. Above that, the next levels I’m watching are $92,000 and $104,000,” he added.
The post Bitcoin (BTC) Shows a ‘Major Sign of Strength:’ Price Rally Incoming? appeared first on CryptoPotato.
