Cole Garner, a renowned market cyclist, believes that Bitcoin (BTC) is in the process of starting a “full bull” BTC price phase.
The popular on-chain analyst mentioned in his social media analysis on Aug. 6 that Bitcoin and the entire crypto market are expected to see a significant surge.
Strengthening of the “backbone” of the Bitcoin bull market
The BTC market has been in a state of stagnation, but those who look further into the future are sure that this cycle is like any other.
Garner believes that activity among the main participants of the Bitcoin market – whales – is a positive sign. He stated that “Whale accumulation trends are a bull market’s backbone.”
In response to a Cointelegraph article in June, the analytics team Jarvis Labs identified a long-term buying trend. In addition, smaller investors, known as fish, have also been increasing their BTC investments.
The technical analyst CryptoCon called whales “diamond hands” due to their behavior in the current cycle. According to his analysis from August 3, “The small investor to whale ratio is full force surging. What does this mean? The investors that have been selling this cycle (2022 – 2023) are small, whales are holding.”
CryptoCon noted that in the previous cycle, whales were not actively selling Bitcoin, which is different from the current situation. He concluded that “Retail sold this last bear market, whales didn’t flinch.”
All hinges on BTC price 200-week moving average
Garner, speaking about c3.ai and fetch.ai, highlighted the importance of the Bitcoin-to-stablecoin ratio on major exchange Bitfinex.
As Cointelegraph reported, the behavior of this ratio has preceded each major bull run in Bitcoin’s history.
“The Bitfinex Whale is significant. Bitfinex is a smart money exchange and the Bitfinex Whale is the main driver of short-to-medium term price action in the crypto market,” he stated.
When such a bullish BTC price breakout could occur is unknown, Garner is expecting it to happen in Q3.
“The bear’s strongest counter-argument is summer seasonality, which is a more powerful force than most people realize,” he noted.
To invalidate the bullish view, he concluded, Bitcoin would need a weekly close below its 200-week simple moving average (SMA), currently at $27,235, according to data from Cointelegraph Markets Pro and TradingView.
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