06.10.202115:07 Forex Analysis & Reviews: Bitcoin: 4 Signs of a Bull Market and a Decisive Frontier Before a Breakout

Bitcoin's upward rally continues, BTCUSD price seems to be drawing a second bullish flag, approaching the moment of truth: further rally or reversal. This review contains the fundamental factors influencing Bitcoin and the forecast that are relevant today.

Whales accumulate and transfer to cold storage

One of the signs of a bull market is the fact that bitcoin whales are actively accumulating cryptocurrency. According to network data provider Santiment, bitcoin millionaire-level whale addresses have made the largest hoard in the past 27 months.

Bitcoin whales holding between $100 and $10,000 BTC accumulated $70,000 BTC 10 days ago. This day has become a record in volume since July 2019. At the same time, they do not intend to sell coins yet.

Supply falls - bitcoin is not sold

According to CoinGape, the supply of bitcoins on exchanges has reached a 30-month low. This suggests that purchased digital coins are sent to cold wallets for storage and are not used in speculation. Long-term bitcoin holders began massive accumulation after stocks bottomed in March 2021. According to Glassnode, these long-term holders have amassed 13 times more BTC than they mined in the past seven months.

Thus, $2.35 million worth of bitcoins have been purchased for long-term storage since the coin supply hit a low in March. During the same period, only $180,000 BTC was mined.

Four fundamental reasons for the growth of BTCUSD

This accumulation pattern clearly shows the beginning of the next bullish cycle. Now BTCUSD needs to consolidate above the resistance area of 52,000.18 - 52,929.15, in order for the cryptocurrency to open the way to the all-time high. Its achievement no longer seems unrealistic, as well as the forecast for the growth of bitcoin to $100,000 per coin.

Thus, among the fundamental arguments of the bull market, it is worth noting:

1. Accumulation of coins by bitcoin whales while reducing the supply of coins on the market. Large players buy cryptocurrency in the hope of growth and transfer it to cold storage.
2. A negative difference between inflows and outflows on the stock exchange, confirming the previous point and reducing fears that the current growth is just a "dead cat bounce" (short-term growth before recession).
3. Favorable market expectations after the head of the Fed said he did not intend to ban cryptocurrency in the United States. On Tuesday, SEC Chair Gary Gensler also noted that his department does not intend to impose such a ban, but such a likelihood "will depend on Congress."
4. Finally, there remains a bullish effect from expectations for Bitcoin ETF approval by the end of this year.

At the same time, it is worth recalling that the price includes everything, which means that technical factors should be kept in mind when trading what we see, and not what we think. Therefore, against the background of all favorable fundamental factors, we keep in mind the price behavior relative to the resistance area 52,000.18 - 52,929.15. And when the price consolidates above it, confirming it as support, it will be possible to breathe out and tune in to buy.