What Next For Bitcoin (BTC) Price Rally as Whales Invest $1.5 Billion in 3-Days?

Bitcoin Price Analysis:

Bitcoin price crossed the $64,000 mark on Sept 20 before retracing 2.6% over the weekend, hitting $62,478 on Sunday, Sept 22. On-chain data shows that whale investors have been buying large amounts of BTC since the US Fed announced  a 50bps rate cut on Sept 18.

Could this propel Bitcoin price towards $70,000 in the week ahead?

Bitcoin Price Advances as 50bps Fed Cut Exceeds Market Expectations

Since the US Bureau of Labor Statistic released dovish US NFP figures on Sept 6, the crypto market has been on a steady uptrend. As Bitcoin price entered double-digit gains within a week of the NFP report, with investors quickly priced in an imminent rate cut.

However, while analysts hinted 100% chance of a rate cut, 67% of investors had anticipated a 25bps rate cut, according to CME Group’s FedWatch report.

Consequently, the Fed decision to slash rates by 50bps has triggered another wave of buying pressure across major risk assets markets, including the cryptocurrency sector.

According to the BTCUSD daily price chart above, Bitcoin opened trading at $60,300 on Sept 18, as investors made last minute purchase, pricing in the rate cut. Many bear traders had anticipated a sell-the-news cycle, but the higher-than expected 50bps cut triggered another buying frenzy.

Between Sept 18 and Sept 20, BTC price rallied by another 6% to hit a new 25-day peak at $64,128. This signals that investors had reacted positively the 50bps rate cut.

Whales Have Invested Another $1.5B Since Fed Rate Cut

At the time of writing on Sept 22, BTC 2.6% towards the $62,000 support level. However, on-chain data trends suggest that large institutional investors are still purchasing BTC behind-the-scenes, a move that could trigger another leg-up in the week ahead.

The IntoTheBlock chart below tracks changes in BTC balances held in wallets that control at least 0.1% of the total circulation supply.

Bitcoin Large Holders have ended each trading days in positive net-flows since the Fed rate announcement. The latest data shows shows that between the wallets acquired a total of 25093.9 BTC in the each of the last 3 trading days since Sept 18.

Valued at the current prices, this implies that bitcoin’s largest investors have spent $1.5 billion on fresh bitcoin purchase since the fed announced a 50bps cut.

When whales’ buying pressure persists amid a price correction as observed over the weekend, it often indicates a rapid rebound ahead.

Bitcoin Price Forecast: Holding $62k Could Trigger Sharp Rebound

After the Fed’s rate cut announcement pushed Bitcoin to a high of $64,128 on Friday, it has since pulled back by 2.6% over the weekend. However, with inflows of $1.5 billion from large investors, Bitcoin may be set for a rebound.

Based on the Bollinger Bands (BB) indicator in the chart below, current BTC price resistance levels can be identified at $64,661 and $70,000, while key support lies at $58,859 and $53,058. Amid this rising market activity, a breach of the upper-band at $64,661 could trigger a rapid breakout towards $70,000.

The Bull Bear Power (BBP) indicator also below a positive value of 4,109.73, signaling high volatility and potential buying pressure. The histogram is green, reinforcing the likelihood of a price rebound. The BBP tracks the percentage that Bitcoin’s price is within the Bollinger Bands range, with higher values indicating price strength.

In the week ahead, breaking above $64,661 could open the door for another rally toward $70,000, while holding $62,000 as support will be critical to avoiding a deeper pullback. The on-chain inflows and these technical signals lean toward a bullish outlook for Bitcoin.