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The Bitcoin market’s continual volatility has prompted experts to shift their perspective from pessimistic to positive and vice versa. Different market indicators, measurements, and assessments constantly tend to point in opposite directions, exacerbating continuing rumours. At the time of writing, the asset seemed to be in a protracted phase of consolidation after months of positive activity on the charts.
Such signs have led to whales and analysts turning away from the cryptocurrency while presenting their extremely bearish sentiments too. An analyst and Bitcoin whale who goes by the name of Mr. Whale on Twitter recently took to the platform to dampen the hopes of many investors by claiming that the “bull market is over.”
Bitcoin’s inability to make new highs in 80+ days is confirmation that the bull market is over.
Never in any bull market in Bitcoin’s entire history have we corrected for this long, then made new highs in the same year. pic.twitter.com/fhh4wlwoXE
— Mr. Whale (@CryptoWhale) July 5, 2021
That couldn’t be further from the truth. Based on historical evidence, the analyst’s prediction that BTC would never achieve a new ATH following a prolonged consolidation period inside a bull run is incorrect.
In reality, there have been periods considerably longer than the 80 days stated by Mr. Whale in his tweet where a multi-month corrective phase was followed by greater highs never previously seen.
During the 2013 bull run, one of the first of its kind, BTC touched a new ATH of $234.52 from $32 in just over a month. However, in the following 7-month window, it traded between its lowest level at $66.83 and highest level at $192, which was a drop of over 75% from its erstwhile valuation.
History remembers that those who remained bullish at the time reaped the benefits of BTC suddenly exploding to $1113 within by November that year. It further went on to hit a new ATH of $1242 the next month, before that bull cycle came to a close.
While the first halt in the current rise was triggered by a sell-off started by market whales, this appeared to be reversing as well, apart from the FUD produced by China and Elon Musk. The quantity of Bitcoin held by whale companies increased by 80,000 to 4.216 million BTC on Friday, the largest level since May, resulting in a 5% price gain over the weekend.
In a recent tweet, on-chain analysis company Santiment stated,
“Bitcoin whale addresses holding between 100 to 10k BTC kicked off July with a 60k BTC accumulation spike, the highest daily spike of 2021. These addresses hold 9.12M coins combined after holding 100k less BTC just 6 weeks ago.”
The initial jump last year was triggered by these whales, whose buyouts had been linked to price increases. The re-accumulation of these whales indicates that the asset may have found a bottom and that another strong rise may be on the way.
During this time, the number of whales hit a three-week high of 1,922, indicating that sentiment is growing bullish once more.
Capital inflows into digital assets, particularly Bitcoin, have also reached a 5-week high, according to another CoinShares report. Its total inflows amounted to $38.9 million, propelling it to the ninth-most valuable asset in the world on Saturday, with a market capitalisation of $648 billion.
If that is not enough, a Wykoff accumulation was recently highlighted in a Rekt. Capital analysis for BTC. The crypto could be seen forming and jumping higher lows as it reaches new resistance levels. This is the first time that a Wykoff accumulation has formed at the top of a bull run, one which leads to markups and possible price surges. More can be read on the current accumulation here.
Finally, despite numerous lows and rebounds, BTC has held its own over the previous month, holding near the $34,000 support level and not breaching its price channel. It dropped over 50% in May after reaching an all-time high of more than $60,000.
Even while it briefly breached the $30,000 mark, it quickly returned to its press time level, which it has maintained for some time.