Bitcoin Holds Above $82,500 as Whales Accumulate, Bullish Indicators Emerge

Bitcoin (BTC) has demonstrated notable resilience in the market, trading at approximately $84,089 as of March 19. This stability is evident despite a broader market sentiment marked by fear and uncertainty. The cryptocurrency has managed to maintain its position above the $82,500 mark, indicating a bullish rebound as major investors, or whales, accumulate more BTC. This accumulation suggests that significant investors are confident in the asset's potential for growth, which could signal a new all-time high (ATH) in the near future.

On the hourly chart, the price of BTC has made a false breakout of the recently formed resistance of $84,325. However, if buyers' pressure continues, one can expect a surge to the $85,000 area. On the bigger time frame, neither buyers nor sellers have seized the initiative yet, as confirmed by the low volume. Bulls may start thinking about a midterm rise only if they restore the rate above the nearest resistance of $85,270. From a midterm perspective, focus should be on the weekly bar's closure in terms of the previous candle's closure. If it happens around $85,000 or above, there is a chance to see an ongoing upward move to the $88,000-$90,000 area.

Analysts have identified several key indicators that suggest a bullish trend for Bitcoin. Prominent market analyst Sam Price highlighted the Pi Cycle Indicator, a tool developed by Phillip Swift, which has historically predicted Bitcoin’s tops accurately. According to Price, the moving averages used in this indicator are still far from overlapping, suggesting that Bitcoin is closer to the bottom than the top of its current cycle. This analysis is supported by the formation of a macro higher-low price action, which typically precedes a strong rebound to higher highs.

Additionally, Price pointed out a hidden bullish divergence on the weekly timeframe, characterized by a higher low on the price chart and an oscillator trending in a lower low pattern. This divergence is a strong signal of an uptrend continuation, further bolstering the bullish outlook. The relative strength index (RSI) and the Stochastic RSI also indicate an imminent rebound, as the premier asset’s trend is close to the Golden Pocket at the 1.618 Fibonacci level.

The Fear and Greed Index (FGI) dropping to 10 on February 27 is another bullish signal, as it has historically marked price bottoms. Each time the RSI has dropped to such an oversold level, Bitcoin has surged extensively to new highs. This pattern suggests that the current dip could be a buying opportunity for investors looking to dollar-cost average (DCA) their positions.

Despite the bullish indicators, some analysts have expressed caution. Analyst Ali Martinez highlighted that Bitcoin must reclaim the $93,700 level to keep the bull season alive. This resistance level will be crucial in determining the short-term direction of the cryptocurrency. Overall, the current price action and technical indicators suggest that Bitcoin is poised for a bullish rebound. The accumulation by whales, the Pi Cycle Indicator, and the hidden bullish divergence all point to a potential new ATH. However, investors should remain cautious and conduct thorough research before making any investment decisions.