Bitcoin Price Shatters 7-Month Consolidation as Whale Activity Soars

During Sunday’s low volatility trading, the Bitcoin price shows an insignificant surge of 0.01% to trade at $68,365. The neutral candle shows the buyers

After bottoming out at $60,000 during Bitcoin’s recent correction, crypto whales have been bolstering their positions in the apex digital asset. Notably, the seven-fold increase in crypto whales, as identified by Santiment, has been crucial in driving Bitcoin's recent price recovery.

According to Santiment, the seven-fold increase in crypto whales is evident in the rising number of wallets holding between 100 and 1,000 BTC. This activity aligns with Bitcoin's price bottoming out at $60,000 on October 10th.

“Bitcoin’s number of whales grew substantially just as its value was bottoming out around $59K on Oct 10th. Between Oct 10th and 13th, there was a net rise of 268 more wallets holding between 100-1K BTC, likely playing a part in this bull rally.”

This increase in large holders is typically viewed as a bullish indicator by analysts, contributing to the renewed optimism in the crypto market during “Uptober.”

Relative Strength Index (RSI) Divergence Hints At BTC Price Weakness Despite Key Breakout

After seven months of sideways trading, the Bitcoin price finally breached a crucial technical formation on Friday, signaling the beginning of a new rally. However, despite this breakout, a closer examination reveals a potential weakness in the BTC price trend.

In October, the apex cryptocurrency soared by 14% from $60,000 to $68,323, quickly recovering from a seven-week low. This upswing also highlighted the price sustainability above the daily exponential moving average (20, 50, 100, and 200), indicating a bullish sentiment for higher recovery.

After rising from a seven-consolidation trend, the BTC price broke out of the overhead trendline on Friday, signaling a technical formation that could propel the price to new highs.

If the breakout sustains, buyers could drive a 22% rally to hit a new high of $82,000, completing the bullish flag pattern. However, if the Bitcoin price reenters the flag range, sellers may gain control, leading to a fresh correction trend.

Bitcoin Price Prediction: Key Takeaways

After seven months of consolidation, the Bitcoin price finally broke out on Friday, signaling a potential rally to new highs.

However, this breakout may not be as strong as it appears, as indicated by the decreasing relative strength index (RSI) levels.

If the breakout fails, the Bitcoin price could reenter the consolidation range, setting up a bearish scenario for lower prices.

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