Bitcoin Price Prediction: BTC Poised to Recover as Whales Buy 60,000 BTC in October

Bitcoin (BTC) has jumped by 1.8% in the past 24 hours and is bouncing cleanly off its 200-day exponential moving average (EMA) as whale accumulation at these levels continues to be strong.

The market appears to be ready to shake off the pessimism that came alongside Binance’s massive hack at a point when the macroeconomic backdrop is taking the back seat.

Last week’s interest rate decision from the U.S. Federal Reserve was in line with the market’s expectations of no rate hike.

Now, with the next meeting still more than a month away, the crypto market could have some breathing room to truly recover from the strong pullback it has endured in the past month or so.

Wall Street Shuns BTC While Whales Add Billions to Their Stash

Net inflows toward Bitcoin exchange-traded funds (ETFs) closed October in negative territory for the first time since June, as investors withdrew $515 million from these vehicles.

Negative inflows have persisted during the first couple of days of November, totaling $514 million, as sentiment remains depressed.

However, whale accumulation was strong in October, indicating that the “smart money” aggressively bought at $80,000. This reflects an optimistic view regarding BTC’s mid-term outlook.

On-chain data from Santiment shows that whale wallets holding between 1 and 100,000 Bitcoin added 60,000 tokens to their stash last month for a total investment of around $4.8 billion.

Wallets holding between 100 and 1,000 BTC were the ones that bought the most, as they added 40,000 tokens in total during this period.

This divergence between the behavior of Wall Street investors and crypto natives may indicate that pessimism is mostly dominating the retail scene, while deep-pocketed players continue to position for the continuation of the current bull market.

BTC Needs to Break Past $79K to Confirm that a True Recovery Has Begun

Turning to the daily chart, we can see that BTC clearly bounced off the 200-day EMA twice during the latest pullback.

However, this second time, buyers seem to have outpaced sellers, potentially setting the stage for a retest of the nearest resistance area in this higher time frame at around $79,000.

To confirm that this first area of liquidity is strong enough, the price would have to climb above that sell wall at $79K to categorize this move as a true trend reversal.

Otherwise, we might still see BTC dipping to lower support areas like the $75,000 threshold or any of the two fair value gaps (FVGs) shown in the chart.

The Relative Strength Index (RSI) just moved above the signal line, which is often considered an early signal of a bullish pivot. However, it is still way too early to trust this move.