Bitcoin price became unpredictable due to whale accumulations.
More than $20 million dollar worth of Sleeping Bitcoin has been transferred last week.
Whale accumulation might help BTC to break the $18,200 level.
Factors. Aside from government regulations, investing cycles, and the collapse of crypto exchanges, another key factor influencing the market is the activity of so-called whales.
As witnessed in recent weeks, the Bitcoin whales became active after the FTX debacle and started transferring their BTC holdings. This sudden accumulation makes the bitcoin price highly volatile.
As per reports, more than million of dollars in bitcoin have been transferred from the addresses of sleeping bitcoin whales, but there has been no confirmation on the selling of those bitcoin.
Reports noted that on November 29, 348 BTC ($5.8 million) were transferred from two whale addresses, with one of the two being the owner of 299 BTC ($4 million). On the same day, 273.61 BTC were transferred from two different sleeping whale addresses that were created around 7-8 years ago.
A whale address formed ten years ago broke all of the aforementioned whale addresses' records by transferring 600 bitcoins on December 2. The transferred coins are currently worth around $10.14 million.
If we add up all of the above BTC transfers since November 29, we have a total of 1247 BTC, which is currently worth around $20 million. However, that's not the end; there will be much more bitcoin whale activity taking place in the future, which will undoubtedly affect Bitcoin's price action.
The Bitcoin price has been trading in a restricted range for the last four days (16,800-$17,200), creating a rounding bottom pattern. This pattern was noticed when assets were consolidated or distributed. The daily and weekly charts should assist in clearing up the picture.
According to the daily chart analysis, BTC formed a double bottom pattern near $15,600 and the price is facing multiple resistance at $17,200 as the Bulls accumulate the stock, indicating that the Bulls may seize the lead and join the Santa Claus rally in the coming days.
According to weekly chart analysis, two candles of the morning star pattern have formed on the BTC weekly chart following a sharp fall near the $15,500 level caused by the FTX drama. Following then, a green candle closed, signifying that the Bulls' rally took the shape of a Santa Claus rally.
Conclusion: As indicated by the technical side described above, it is clear that if the BTC successfully closes above the $17,200 level, we can expect a sharp rise in price near the next resistance level of $18,200, after which the $20,000 milestone may be reached in the short term.
What are your thoughts on the current Bitcoin whales' accumulation? Will whales assist BTC in successfully closing above $17,200? Share your views in the comment section below.
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