Bitcoin price remained above $60,000 as whale accumulation and market expectations of a possible rate cut by the Federal Reserve drove bullish momentum.

Bitcoin price gained 0.34% during Sunday’s trading session, indicating sustainability above the psychological $60,000 mark. The bullish momentum was driven by whale/institutional accumulation and market expectations of a 0.5% rate cut at the September FOMC meeting.

Will Whale Hoarding Drive Bitcoin Price to New Highs?

According to on-chain data tracker Spotonchain, a whale has been actively accumulating Bitcoin since August 29. So far, the whale has purchased about 3,933 BTC (worth $234 million) from the cryptocurrency exchange Binance, with the most recent withdrawal occurring earlier today at a price of about $59,591 per BTC.

Currently, this whale holds 10,491 BTC (worth about $630 million). Typically, such large transactions boost market confidence as price increases are the result of whale/smart money buying.

However, the same whale allegedly sold 7,790 BTC (about $467 million) to Binance for about $59,953 around June 27 and July 8, 2024, causing a sharp 14% drop in the price of Bitcoin.

Regardless, business intelligence company Microstrategy recently increased its Bitcoin holdings, acquiring 18,300 BTC worth $1.11 billion. According to executive chairman Michael Saylor, the acquisition brings the company’s total Bitcoin holdings to 244,800 BTC.

With whale/institutional buying, the rise in Bitcoin price to $60,000 is more likely to be driven by market expectations of a September rate cut.

With the recent cooling of US CPI and PPI inflation data, market speculation has been growing that the Federal Reserve will cut interest rates by 50 basis points at the upcoming FOMC meeting. According to the CME FedWatch tool, the probability of a 0.5% rate cut by the Federal Reserve is 50%, and the probability of a 0.25% rate cut is also 50%.

Typically, rate cuts would make it easier for banks to borrow money for operations, boosting capital flows in markets and encouraging more investment in riskier assets such as cryptocurrencies.

BTC price is expected to break through sharply

At $60,174, Bitcoin price is just 1% away from a major breakout of the descending trendline. The dynamic resistance that has remained intact since late July has fueled the current corrective move and a potential breakout would strengthen the bullish momentum.


If buyers convert the overhead resistance into potential support, BTC price could target $68,000, followed by the all-time high resistance of around $73,777.


Conversely, the Bitcoin price prediction shows clear resistance at the $65,800 mark as more than 6.84 million addresses hold around 3.1 million BTC.

Therefore, if a potential rally faces supply pressure at this resistance level, sellers could push Bitcoin into an extended comfort phase.

$BTC