Bitcoin is trading sideways in a consolidation pattern, forming a bull flag that is clearly observable on the daily chart. While prices are stable at the time of writing, shaking off yesterday’s weakness, BTC is down 8% from last week’s highs and remains in a frail position.

Technically, Bitcoin needs to see prices rise sharply above $63,000, at least in the miniature term. When that happens, it could mean that buyers have enough momentum to confirm the gains made on August 8. This development could trigger another leg of growth toward $70,000 in a buying continuation pattern.

Bitcoin Whales Accumulate, Traders Need to Be Patient

While market participants are positive, one X analyst believes they may have to wait longer. The analyst, citing on-chain data, he said Bitcoin whale rate is at “extremely high” levels.

This indicator, used by stock analysts to measure the number of immense whale trades relative to overall activity, helps assess the degree of involvement of whales, primarily institutions and deep-pocketed addresses, at a given price level.

A rising whale rate means that Bitcoin is likely in an accumulation phase. Here these whales tend to gather during periods of decline, taking advantage of this this low prices to augment coin resources.

Historically, analysts say prices tend to spike in such a situation, especially when there are several weeks or months left until the halving.

Bitcoin halved its rewards to miners on April 20. The drop in mintage, making the coin deflationary, coupled with increasing demand from institutional players gaining exposure via spot Bitcoin ETFs, should positively impact prices in the coming days.

Stablecoins are flooding into exchanges, exceeding $72,000 will be crucial for bulls

Looking at the events on the daily chart, it is clear that sellers have the upper hand, at least from the top. There was no comprehensive reversal of the losses from slow July and early August.

A break above $63,000 will be positive. However, a pristine close above July highs is needed to take the coin above $70,000 and $72,000.

Nevertheless, there are positive changes that can stimulate and revitalize demand. The analyst, citing commercial data, he said there has been an influx of stablecoins onto leading exchanges such as Binance and Coinbase.

If history is leading, it means that traders are increasing their purchasing power of cryptocurrencies and are willing to double down. Overall, this is a net positive for Bitcoin and other digital assets.

Featured image from Canva, Chart from TradingView