Bitcoin rebounded and surged above $20,000 as whales begin to rally again
- Tether whales have been reducing their holdings, while Bitcoin whales have been increasing theirs for several weeks.
- Bitcoin is possibly going to maintain the active bullishness to turn $20,000 to support by the end of this week.
- Consequently, the royal coin’s market value could also register a boost and rise above the 44-month low.
The crypto market has been in a suspended state for the past couple of months, and that effect doesn’t seem to have gone away.
Micro fluctuations take place every now and then. However, on the macro time frame, cryptoassets need a big boost. Interestingly in the case of Bitcoin, a change in a particular pattern can signal a trend reversal.
The Bitcoin whales are back
Since the end of August, Tether whales had consistently accumulated as the supply of Bitcoin whales continued to decrease. This may be due to the persistent market conditions, but the behavior of these whales has changed significantly in the last couple of days.
While the supply of the Tether whales has started to fall, the Bitcoin whales have accumulated again. A rare sight this year, this group has accumulated significant BTC. Since September 27, the BTC addresses with 100 to 10,000 BTC have added around 46,173 BTC worth over $934 million to the wallet.
The BTC price has been steadily improving for the same duration, with the biggest 24-hour increase in almost a month observed yesterday when it increased by 6.73%. Currently trading at $20,034, Bitcoin may be on its way to record a recovery as the Parabolic SAR indicated an uptrend for the first time in a month.
Bitcoin 24 Hour Price Chart
The presence of the black dots under the candlesticks is evidence of the same. Additionally, over the past few weeks, the Relative Strength Index (RSI) has also been flashing bullish signs as buying pressure increased.
If bullishness is sustained, BTC could be on track to use $20,000 for support.
Should Bitcoin’s market cap increase?
Following the bearishness, BTC’s market cap has been below the bar for almost two months, even falling to the same level as the market cap to realized value (MVRV) ratio was at, back in March 2019.
Bitcoin MVRV ratio
If the price of the royal coin rises, demand will potentially observe an increase as well. Consequently, the market value of the asset will recover, bringing it above the neutral level of 1.0.
This will act as an important bullish signal going forward.
