Bitcoin Price Prediction: Analyst Predicts $85k Rally, Whales Mirror 2022 Pattern

Analysts believe Bitcoin price consolidation is a buying opportunity before a potential upswing due to mining cost, whale buying patterns, and exchange outflows.
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Key Insights

  • While Bitcoin's price has dipped recently, this consolidation period might be a major chance for investors to buy in before a potential upswing.

  • According to Ali, Bitcoin's mining cost currently sits at around $85k—Historically speaking, Bitcoin has always jumped in price past this price level.

  • Bitcoin whales seem to follow a similar buying pattern to two years ago, despite Bitcoin rallying by more than 200%.

  • A marked decrease in the amount of Bitcoin on Coinbase could be a major sign that investors are moving their coins, and a rally is incoming.

Consolidations in the crypto market might not be very favourable events in the short or even the medium term.

However, in the longer term, they give investors enough time to load up their bags, restrategize, and re-enter the market for even more profitable trades.

It so happens that Bitcoin has been consolidating for the last three months and is now down by around 10% from its all-time high of $73,800.

This is another week to speculate about Bitcoin’s direction—will Bitcoin finally recover, or will we see a continuation of this 10% dip?

Here are three things you may find interesting about Bitcoin this week.

Bitcoin Price Prediction: BTC to Hit $85K

It all comes down to the Bitcoin miners.

After the halving in April 2024, the Bitcoin miners faced increasing pressure to sell their Bitcoin block rewards to make ends meet.

This might be one of the leading causes behind Bitcoin's current 10% decline from its $73,800 all-time high.

However, while massive miner dumps might be a core reason for the ongoing market slump, insights from a new tweet by crypto analyst Ali Martinez on 15 June, tell a different story.

<div class="paragraphs"><p>Bitcoin to break above $85,000</p></div>

Bitcoin to break above $85,000

According to the analyst, the miners continue to play a massive role in determining Bitcoin’s price direction, and might even be responsible for the next rally.

Martinez pointed out that the average cost of mining Bitcoin is $86,668.

From a historical standpoint, Bitcoin typically rises above this mining cost, keeping the miners in business and allowing the network to remain functional.

In essence, this means that a rally above $85,000 might be easy for Bitcoin when the right time comes.

<div class="paragraphs"><p>Bitcoin’s breaks above its mining costs</p></div>

Bitcoin’s breaks above its mining costs

According to the analyst's chart, Bitcoin’s market price exploded well above its mining costs between mid-2016 and early 2018. The same happened again in 2021 and mid-2023.

Bitcoin Whales Repeat Two-Year HODLing Patterns

According to insights from Santiment on Twitter (X), Wallets holding 10 or more bitcoins have just matched their same holdings from precisely two years ago.

<div class="paragraphs"><p>Whales repeat 2022 buying levels</p></div>

Whales repeat 2022 buying levels

But why is this interesting?

For starters, Santiment notes that Bitcoin has moved up significantly from where it used to be in 2021/2022.

The cryptocurrency’s price has moved to the upside by as much as +226% over the last two years—but has that stopped these whales?

Santiment also noted that many speculators used to believe that FTX was “suppressing cryptocurrency prices” in the second half of 2022.

However, even with the supposed “suppressor” gone, there are still “undeniable” similarities between Bitcoin wallets holding ten or more $BTC, and the cryptocurrency's overall market value.

Bitcoin Whales Have Been Actively Draining Coinbase Since February

According to insights from CryptoQuant over the weekend, the Bitcoin whales have been observed doing something interesting.

<div class="paragraphs"><p>Coinbase exchange reserves are declining</p></div>

Coinbase exchange reserves are declining

CryptoQuant noted that the cryptocurrency’s exchange reserves have been actively declining on Coinbase since February 2024.

In fact, as indicated by the chart above, there is a marked inverse correlation between the price of Bitcoin and its Coinbase exchange reserves. This suggests that if the amount of Bitcoin on Coinbase continues to decline at this rate, we might see a Bitcoin recovery sooner rather than later.

In detail, CryptoQuant notes that while there used to be upwards of 1 million $BTC as of 18 February 2024, this figure has dropped to 878K, with an interesting correlation to the demand for spot Bitcoin ETFs.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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