Whale Activity Boost Drives Bitcoin Rally to $70,000

Bitcoin (BTC) has witnessed an increase in whale activity in the last week, leading to a rally in the king coin’s price.

In a new report, CryptoQuant analyst Joao Wedson assessed BTC’s Whale Last Active (7 – 30 days) indicator and found that it has climbed significantly since the beginning of March. 

According to Wedson:

“When whales are active for a period between 7 to 30 days, it is often associated with an increase in the value of Bitcoin, a phenomenon known as a Bull Run.”

This has affected BTC’s price in the last week. At press time, the coin was worth $70,688, logging a 7% price surge in the last seven days, according to CoinMarketCap’s data. 

Time to Buy More Bitcoin?

An assessment of BTC’s price performance on a 1-day chart hinted at the possibility of an extended rally in the short/mid-term. For example, its key momentum indicators trended upward at the time of writing, indicating a spike in demand for the leading crypto.

Its Relative Strength Index (RSI) was 56.66, while its Money Flow Index (MFI) was 72.82. These indicators showed that market participants favored BTC accumulation over its distribution at these values. 

Further, BTC’s MACD line (blue) crossed above its signal line (orange) on April 7, marking the re-emergence of the bulls. 

When an asset’s MACD line intersects its signal line in an uptrend, it is considered a bullish signal. This indicates that the shorter-term moving average is higher than the longer-term moving average. Traders often interpret this crossover as a signal to buy or hold long positions as they anticipate further price rallies. 

Also confirming the possibility of a sustained rally in BTC’s price, the coin’s Aroon Up Line (orange) was 92.86% at the time of writing. This indicator measures an asset’s trend strength and potential reversal points.

When its Aroon Up Line is close to 100, as in this case, the uptrend is deemed strong and likely to continue if positive sentiment holds.