Bitcoin is poised for a parabolic rally to $330,000 during the bull cycle as smart money and whales accumulate more coins.
Analyst @satoshibaggins on X believes smart money has doubled down on Bitcoin during the recent dip. This dip was the same in every Bitcoin cycle, where the price of BTC rallies to a fresh all-time high every four years.
The analyst also compared Bitcoin’s performance in the past decade. Since 2012, the price of Bitcoin has made significant gains every four years. However, during each cycle, the returns shrink by around 60%.
In the 2020 bull market, Bitcoin surged from $8K to $69K, marking a 1,200% price increase. Going by these past trends, BTC is poised for a 450% price in the current cycle, which will see the price hit $330,000 per coin.
While you're being scared, smart money is doubling down.That’s because this dip is nothing new.As you can see, Bitcoin goes to a new all-time-high every 4 years:2012: Bitcoin goes from $12 to $1000 = ~9,000% increase2016: Bitcoin goes from $650 to $19K = ~3,000% increase… pic.twitter.com/gxHsEwzLBs
— Arsen | Bitcoin Therapy (@satoshibaggins) July 10, 2024
The analysis comes as Bitcoin struggles to breach the $60,000 price. The Bitcoin Fear and Greed Index has also been at its lowest level since early 2023, indicating that the price is in a state of “extreme fear.”
Whales are Accumulating At The Fastest Pace
Despite Bitcoin failing to recover from the recent price drop, whale investors continue accumulating, possibly taking advantage of the low price.
According to a CryptoQuant report, whales have increased their Bitcoin holdings at a monthly growth rate of 6.3%, marking the fastest since April 2023. The rapid accumulation indicates that demand for BTC is rising.
The report also noted that Bitcoin’s recent price movement could signal a price bottom. BTC recently hit a four-month low of around $53,000, causing small and whale investor losses. This crossover to the downside could indicate that the price has bottomed out, and a major correction could be coming.
The rapid accumulation can also be seen in the increase in wallet addresses holding more than 10 BTC. According to Santiment, these addresses have surpassed 152,000, marking the highest level since May 21.
Bitcoin’s Relative Strength Index (RSI) has pushed above the neutral zone and now hovers around 58. As seen below, the RSI line is also tipping north, pointing towards increased buying pressure.
If the price accumulation gives the price the support it needs to rally higher, BTC will likely attempt to breach the $60,000 price again. Holding the $60K price could sustain an uptrend that could drive fresh all-time highs.
