Bitcoin price trading sideways as the number of whales increases

Bitcoin price trading sideways as the number of whales increases
  • Bitcoin price has been trading within a tight range below the $9,500 mark in the past few days
  • The number of Bitcoin whales has increased by 2% in the last month
  • The buyers are still targeting $10,000, a level that has proved a tough nut to crack

Bitcoin price is trading sideways in a tight range below the $9,500 mark. According to the latest analysis, the number of whales has increased by 2% in the last month.

Fundamental analysis: Number of whales hits a new high

Bitcoin lost its momentum since it went through the halving process in May, however, investors are still optimistic about the cryptocurrency’s long-term outlook.  To learn more about Bitcoin mining, click here

Bitcoin underwent halving on May 11, when the mining reward per block got reduced from 12.5 BTC to 6.25. Many investors expected a sharp price increase in BTC after the halving, but that’s not what’s happening right now. 

It looks like the market’s biggest players, also known as whales, have continued to hoard Bitcoins. As of June 16, the number of Bitcoin whales was 1,840, which is an increase of 2% compared to the number recorded on May 1, according to the blockchain analytics company Glassnode

The number of Bitcoin whales also reached a new high on Monday, 1844, the highest level since November 2017. The post-halving accumulation of Bitcoin indicates optimism among investors when it comes to Bitcoin’s long-term prospects. 

Technical analysis: Bitcoin trading sideways

Bitcoin has continued to trade in a tight range in the last couple of days after another attempt to break above $10,000 failed last week. Still, analysts at Bloomberg believe Bitcoin might reach an all-time high of $20,000 by the end of this year. 

The consistent accumulation of BTC and other circumstances might cause the Bitcoin price to rise well above $10,000 in the near future. 

“We are bullish in the medium term with a target of $12,000,” said Matthew Dibb, one of the founders of Stack, a provider of digital asset trackers and index funds. He also said that if BTC were to break above 12,000, it would probably be after a period of erratic trading. 

“Bitcoin is currently trading as a ‘risk asset’ and will likely be subject to continued volatility as further US economic data is released in the coming days,” Dibb continued.

Bitcoin daily chart (TradingView)

In the meantime, the price action remains supported by the horizontal support near $9,100, while the strong resistance at $10,000 is still a major target for the buyers.

Summary

Bitcoin price has continued to trade in a tight range in the last couple of days. The number of Bitcoin whales has increased by 2%, which may signal that the accumulation of BTC may prompt prices to trade higher in the near future. 

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.
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