Bitcoin’s Technical Bias Flips Bullish as Price Climbs Above Descending Trendline

The breakout is backed by a pickup in volumes and accumulation by so-called whales.

Oct 7, 2021 at 7:47 a.m. UTC
Updated Oct 7, 2021 at 1:32 p.m. UTC

Bitcoin ran through key technical resistance levels on Wednesday, strengthening a bullish bias, and extended gains Thursday.

The cryptocurrency jumped above $55,000 yesterday, breaching the downtrend line connecting the April high of $64,801 and September highs near $52,000.

Buyers also flipped the horizontal resistance at $53,000 into support, the level at which buyers tend to buy, having taken out a significant hurdle at $51,109 earlier in the day. That level marked the widely tracked 61.8% Fibonacci retracement of the September sell-off.

“BTC/USD technicals flipped into the bullish territory after breaking above a key trend line,” research boutique Delphi Digital said in its daily analysis, referring to bitcoin and the U.S. dollar. “The move was catalyzed by significant spot buying at the North American open.”

The breakout has exposed highs near $60,000 registered in the first half of May – more so, as the recent bullish move is backed by a pickup in trading volumes and accumulation by whales, the investors with large amounts of the cryptocurrency.

Since Sept. 28, daily cumulative spot trading volume on top-tier exchanges – Binance, FTX and Coinbase – has nearly doubled to $45 billion, Delphi Digital noted.

According to data tracking firm Santiment, whale traders began accumulating coins in late September, kicking off the rally. Those holding between 100 and 10,000 BTC accumulated 70,000 BTC on Sept. 25, the most in a single day for this group since July 2019.

Bitcoin was trading near $54,600, representing a 13.4% gain for the week. The market saw a bigger rise of over 15% in the final week of April.

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Omkar Godbole is the senior reporter on CoinDesk's Markets team.