Fueled by Whales’ Massive Buy, Bitcoin Price Rally and is Likely to Reach a New High by the End of 2021

By Harry Smith

Recently, cryptocurrencies have seen a stronger wave of upward momentum, with bitcoin once soaring to $56,000, the highest price since May 12, reigniting the bullish sentiment. Driven by Bitcoin’s sharp rise, the overall market of cryptocurrencies is dominated by the running up, with ETH prices breaking $3,600 and the market sentiment index showing a greedy state. However, looking at the bigger picture, other cryptocurrencies have not responded to Bitcoin effectively: about 30% of the top 100 projects by market capitalization are going downwards, and the remaining rising projects have not shown strong relevance with BTC.

Strategy Analysis

On October 6, CryptoQuant CEO Ki Young Ju tweeted that it seemed someone had purchased $1.6 billion worth of BTC in five minutes. The whale’s massive buy drove market sentiment and pushed the price of bitcoin up to $56,000, making the market value of bitcoin once again surpassing $1 trillion. The development has laid a new foundation for the whole crypto market, whose total market value now sits at $2.2 trillion.

Faced with such a “too big to ignore” market cap,  many traditional institutions have taken active measures. According to CoinDesk, Bank of America, after forming a team dedicated to cryptocurrency research three months ago, announced its digital asset research coverage, focusing on companies such as payment providers, banks, utilities and media giants. Bank of America noted that more than $17 billion was invested in digital assets and blockchain technology ventures in the first half of 2021, well above the $5.5 billion invested in the same period last year. It is easy to see that cryptocurrencies are establishing a very strong infrastructure building landscape, thus increasing the demand for market development in the rising market.

Market Analysis

BTC: Driven by several good news, BTC price pulled up sharply, breaking through the MA5, MA10 and MA30 pressure levels. The 4-h K-line also opens upwards, sitting above the upper line of the Bollinger Bands. We could see that the $56000 level will remain as a strong pressure level. KDJ’s upwards diffusion is blocked. Bitcoin is finding support at the $50000 and meeting resistance at the $56000 level.

ETH: This week, ETH price movements remain relevant to BTC, though less substantial, reaching a maximum of $3650. EMA upward trend remains unchanged, 4-hour Bollinger band opens upwards, K-line falls back from the upper line to the lower line of Bollinger bands, and KDJ spreads upwards. The support level of ETH is around $3300, and the resistance level is about $3700. If it can stand stable at $3500, it may break upward to $3800.

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