If Bitcoin (BTC) Prices Are In a “Virtuous Cycle”, Is $12,000 Near?

Dalmas Ngetich

Last Updated: June 11, 2024 9:14 pm

2 mins read

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Bitcoin prices on an uptrend, add 23.9 percent
Analysts confirm Bitcoin whales ramping up

Sid Shekhar of TokenAnalyst now confirms that indeed Apr 2 momentum shifting bull bar was fueled by heavyweights. With that, bulls are back, and Bitcoin (BTC) is firm above $4,500, adding 23.9 percent from last week’s close.

Bitcoin Price Analysis

Fundamentals

True, Apr 2 bull bar did rouse participation, and we can authoritatively say the spike did shift market sentiment. However, the inexplicable surge is what remains mysterious to many. Before this, the Bitcoin and cryptocurrency market, in general, was calm, trending within tight ranges. In fact, from the chart, Bitcoin prices were trending within a $1,300 trade range, held within that consolidation for the last three months before early this week’s burst and close above $4,500.

Experts are still speculating, but the most viable explanation is a visible spike in the number of active BTC wallets from end March. Complementing that was analysts finding that on Apr 2, several whales simultaneously jumped in, tipping the scale and a chain reaction crashing stops and sparking a surge up was a cause.

As reported before, a $100 million long position spread across three exchanges is the closest thing explaining this miraculous recovery in a market where everyone was expecting the US SEC to approve Bitwise’s Bitcoin ETF application. Here’s what Sid Shekhar, the co-founder of TokenAnalyst, observed:

“We were able to see some of this stuff before it happened. We saw a few large whale movements of funds, then a concerted inflow into multiple exchanges from whale wallets, and then we were seeing a virtuous cycle. The whales didn’t move it all by themselves, but they were the first domino. As soon as that first domino fell, we saw a bunch of programmatic action based on momentum, which led to more and more price action.”

Candlestick Arrangements

At the time of press, Bitcoin (BTC) is up 23.9 percent from last week’s close with a market cap of $87,964 million. That means buyers are firmly in control meshing with our previous BTC/USD trade plan, traders should fine-tune entries in the 4HR chart or lower—and that’s regardless of if there is a correction—as long as prices are above $4,500.

With that, the first target should be the lower limit of our resistance range at $5,800. Notice that upward momentum is high and the failure of prices to dip hints of strong hands supporting prices and maintaining bull bars along the upper BB.

Technical Indicators

Volumes are dipping, but the overall momentum as mentioned above is bullish. However, should there be a counter bar driving prices below $4,700 in a correction, accompanying volumes should be low below Apr 2 bull bar with 54k.

Chart courtesy of Trading View

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
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Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
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