- Bitcoin (BTC) has stalled in the last few days allowing room for altcoins led by ETH, DOGE and SHIB to outshine it.
- Fundamentals highlighted by Kraken Intelligence point to BTC setting a new ATH in the next bullish cycle.
Bitcoin (BTC) set a new all-time high a few days ago after brushing with $68,000 but has since pulled back. After retesting the $58,000 support, Bitcoin has climbed back $61,000 but has since stalled at this level. Despite the hesitation, market analysts still believe that the top coin will end the year approaching the coveted $100,000 level.
Crypto market intelligence firm Decentrader pointed out that the recent retracement to $58,000 allowed the digital asset to establish May’s failed breakout level to be its new support. The intelligence firm now believes that the crypto king will have a clear run to the $80K to $90K level. The firm noted;
On a technical, market cycle and on-chain basis, we continue to believe that the next major area of difficulty for BTC will not hit until we approach $85,000 – $90,000.
BTC in strong hands
Institutional investment remains a key factor in Bitcoin’s movement. Most recent data shows that institutions are taking advantage of the stalemate to accumulate more. Earlier in the week, MicroStrategy revealed that it had added almost 9,000 Bitcoin (BTC) to its holdings in Q3. With more than 114,000 Bitcoins, MicroStrategy is the world’s largest publicly traded corporate owner, a position it is dedicated to holding for the long term according to its CEO Michael Saylor, a long term Bitcoin bull.
— Michael Saylor⚡️ (@saylor) October 28, 2021
A recent Kraken report titled “Shocktober” has also shown that Bitcoin whales have been heavily accumulating and could easily trigger a supply shock. Whales holding more than 100 BTCs have both increased their holdings and addresses. Kraken notes that in the last month, there was a 0.25 percent increase to $720 billion in collective holdings while the addresses have increased by 1.6 percent.
The same accumulation pattern has also been identified with miners. The researchers from Kraken note that large participants have been holding Bitcoin. On the other hand, small participants are taking profits in favourable conditions.
However other data points have shown that it is not just whales and institutions interested in Bitcoin. Data from Chainalysis drawn from P2P platforms shows that worldwide adoption has skyrocketed by over 880 percent.
At the time of press, Bitcoin is exchanging for $61,600 after a marginal +2 percent change in the last 24 hours.
As Bitcoin struggles to forge ahead, altcoins led by Ethereum have taken advantage to outperform the crypto king. In the last few days, the likes of Ethereum (ETH) and Shiba Inu (SHIB) have set new all-time highs.