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Bitcoin’s (BTC/USD) technical bias turned bullish as the price passed key resistance levels, analysts report. The king of crypto’s ascent continues today. On Wednesday, the cryptocurrency jumped above $55,000, cutting the downtrend line that linked the September highs near $52,000 and April high of $64,801.
Horizonal resistance turns into support
Buyers turned the horizontal resistance into support at $53,000, having overcome the substantial barrier of $51,109 earlier that day. That level marked the 61.8% Fibonacci retracement, a widely tracked phenomenon dating from September.
Analysists with research firm Delphi Digital wrote:
BTC/USD technicals flipped into the bullish territory after breaking above a key trend line. The move was catalyzed by significant spot buying at the North American open. (Wednesday, October 6) was starting to look despondent, with BTC seeming to have rejected a key trend line, and other crypto assets plunging. But towards the North American open, BTC posed a stern reversal and pulled the rest of the market up with it. In other news, dog coins are all the rage again. SHIBA INU (SHIB/USD) price is up over 80% in the last 24 hours, and other dog coins have followed suit. The last time dog coins pumped, it was a sign of ridiculous froth and coincided with the April/May top.”
Bullish trend backed by whale accumulation
Bitcoin’s breakout gives hope of attaining the highs near $60,000 registered back in May because the recent trend is backed not only by whale accumulation, but also by an increase in trading volumes. Whales are investors holding a lot of Bitcoin. Delphi report that since Sep 28, the cumulative spot trading volume on Coinbase, FTX, Binance, and other top exchanges has almost doubled to $45 billion a day.
Whales kicked off the rally in September
Data tracking company Santiment reports that whale traders determined the current trend by accumulating coins in late September. On September 25, investors who held between 100 and 10,000 Bitcoin accumulated another 70,000, a daily record since July 2019.
So far, Bitcoin’s gain for the week is about 13.4%. This is almost equivalent to its growth of around 15% in the last week of April.