Bitcoin bulls eye $70,000 if it breaks above the consolidating zone

• Bitcoin price consolidates between $62,000 and $64,700 key levels, indicating a period of indecision among traders.
• Arkham intelligence data reveals that dormant wallets are beginning to move, while Lookonchain data indicates a significant accumulation by whales.
• US Spot ETFs record an inflow of $136.70 million on Tuesday.

Bitcoin (BTC) trades slightly down around $63,800 at the time of writing on Wednesday, consolidating within the $62,000 and $64,700 key levels for the sixth day in a row. There are signs of indecision among traders as dormant wallets begin to move, some whales accumulated, and the US Spot Exchange Traded Fund (ETF) recorded more than $136 million inflow on Tuesday.

Bitcoin dormant whales are active 

Akham intelligence data shows dormant wallets are on the move. A 13-year-old whale wallet, which had remained inactive since mid-2011, transferred 20 BTC valued at $1.27 million to the Bitstamp exchange on Tuesday, marking its first movement since the coins were initially received. During the same period, another whale wallet holding $77 million worth of  BTC also move 5 BTC to Kraken. This wallet still holds 1215 BTC worth $77 million and has been mining since 2009, one month after the Bitcoin launch. This whale woke up around three weeks ago and has moved 10 Bitcoins to Kraken in 3 separate transactions. 

The third early Bitcoin whale, which mined Bitcoin around the same time, was active last week. After 15 years of dormancy, it woke up to move $16 million of BTC.

This movement by early dormant wallets could spark Fear, Uncertainty, and Doubt (FUD) among the traders, as the wallets are generally moving BTC into centralized exchanges that are likely to sell. Investors must be cautious about such activity.

Lookonchain data shows that two whales accumulated $219 million worth of BTC on Tuesday. The first whale accumulated $154.43 million in BTC, while the second whale accumulated 1,015 BTC worth $64.47 million. Whale accumulations like these are generally considered a positive sign and show investors confidence in Bitcoin.

Moreover, institutional flows rose on Tuesday. According to Coinglass’s data, the US spot Bitcoin ETF experienced an inflow of $136.70 million on Tuesday. This is a positive sign for Bitcoin, as such inflows suggest that institutional investors are actively accumulating the cryptocurrency. 

Additionally, the total Bitcoin reserves held by the 11 US spot Bitcoin ETFs, Asset Under Management (AUM), have reached $51.04 billion, the highest level since July 30.

Bitcoin Spot ETF Net Inflow chart

Bitcoin ETF AUM

Santiment’s Exchange Flow balance metric also shows a positive sign for Bitcoin. This metric shows the net movement of Bitcoin into and out of exchange wallets. A rise in this metric indicates more BTC has entered the exchanges than exited, hinting at selling pressure from investors. Conversely, a fall in the metric indicates that more BTC left the exchange than entered, indicating less selling pressure from investors.

As in Bitcoin’s case, the metric fell from 2,099 BTC on Monday to -7,510 BTC on Tuesday. This fall indicates increasing confidence among investors as holders remove BTC tokens from exchanges and store them in cold wallets.

Bitcoin Exchange Flow balance chart

Bitcoin bulls set sights on $70,000 amid ongoing consolidation

Bitcoin's price has been consolidating between the $62,000 and $64,700 key levels for over six days after rallying 7.5% last week. As of Wednesday, it trades slightly down at $63,854 after retesting its upper consolidation level of $64,700.

If Bitcoin’s price breaks above this consolidating range around $64,700, it could first rise to retest its daily resistance level at $65,379. A successful daily close above this level could extend the rally by 7% to retest its July 29 high of $70,079.

The Relative Strength Index (RSI) on the daily chart points downwards, trading at 62, reflecting the decrease in bullish momentum. For Bitcoin to break above the consolidating zone, the RSI must rise and head towards its 70 level. However, traders should be cautious if it exceeds the overbought level 70.

BTC/USDT daily chart

However, if BTC breaks and closes below the consolidation zone around $62,000, it could decline 7% to retest its September 17 low of $57,610.