Bitcoin Whales Increase As Dominance Hits 3-Year High, Potential Short-Term Dip Looms

Bitcoin’s number of large holders, or “whales,” saw a significant rise as the cryptocurrency’s price bottomed around $59K on October 10th.

Between October 10th and 13th, the network added 268 wallets holding between 100-1,000 BTC. This surge in whale activity likely played a role in the current bull rally.

Bitcoin’s dominance in the cryptocurrency market also reached a milestone, surpassing 65% for the first time since early 2021. This marks a 3-year high, reaffirming Bitcoin’s strength and influence in the broader crypto ecosystem.

Despite the bullish momentum, Bitcoin may be heading for a short-term dip. The TD Sequential, a technical analysis tool, is flashing a sell signal on Bitcoin’s 4-hour chart, while bearish divergence has appeared on the Relative Strength Index (RSI).

This indicates a potential brief correction before Bitcoin climbs to new highs. The same sell signal is also showing up on the Bitcoin daily chart, suggesting caution in the near term.

Bitcoin Spot ETFs Continues Notable Inflows 

Meanwhile, Bitcoin spot ETFs continue to experience strong inflows. On October 18th, total net inflows amounted to $274 million, marking six consecutive days of net positive inflows. Ark Invest and 21Shares’ ETF, ARKB, saw $110 million in new funds, while BlackRock’s ETF, IBIT, had an inflow of $70.4 million.

While Bitcoin’s price may face short-term volatility, the combination of increasing whale accumulation, rising dominance, and continued institutional inflows through ETFs all point to a strong foundation for future growth. Investors remain optimistic, anticipating higher highs after any potential correction in the days ahead.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Source: https://nulltx.com/bitcoin-whales-increase-as-dominance-hits-3-year-high-potential-short-term-dip-looms/