Bitcoin price has surged to $109,500, marking a 4% increase for the week and a 2% rise intraday, despite the movement of major dormant wallets. Recently, two wallets that had been inactive for over six years transferred a total of 8,000 BTC to Coinbase Prime for custody.
In a surprising turn of events, over 80,000 BTC that had been untouched for five years or more moved last Friday, sparking speculation about a potential market dump. However, the market has remained relatively stable, indicating strong accumulation happening beneath the surface.
On a different note, the US Dollar Index (DXY) has hit its lowest level in 21 years compared to its 200-day moving average. This weakness in the DXY is usually seen as bullish for risk assets like Bitcoin. With this increased bullish sentiment, experts are now predicting a near-term target of $140,000 for Bitcoin.
Technical analysis also supports this bullish outlook for Bitcoin. The MACD has formed a golden cross, accompanied by a rising histogram, while the Awesome Oscillator (AO) confirms that momentum is picking up. The Chaikin Money Flow (CMF) also indicates strong and increasing money flow, reflecting positive sentiment in the market. The Relative Strength Index (RSI) is currently above the median line at 58, suggesting that Bitcoin’s strength remains intact, with room to grow before entering overbought territory.
Analysts are now eyeing even higher short-term targets, with some suggesting a potential climb to $140,000. Notably, analyst Mister Crypto has identified a bullish cup and handle pattern forming in the price action. The “cup” formed from January to early May, while the “handle” has been developing from late May to early July. Once this pattern breaks out, Mister Crypto is targeting a parabolic move to $140,000.
In conclusion, despite the movement of dormant wallets and the potential for a market dump, Bitcoin has shown resilience and strength in its price action. With technical indicators pointing towards bullish momentum and experts predicting a target of $140,000 in the near future, the outlook for Bitcoin remains positive. Stay tuned for more updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.