Bitcoin is moving sideways in a consolidation, forming a bull flag that is clearly visible on the daily chart. While prices are stable at the time of writing, shaking off yesterday’s weaknesses, BTC is down 8% from last week’s highs and is still in a vulnerable position.

Technically, what Bitcoin needs, at least in the short term, is for prices to shoot higher and break through $63,000. If this happens, it could signal that buyers have enough momentum to confirm the gains made on August 8. The development could set the ball rolling for another move higher towards $70,000 in a buy trend continuation formation.

Bitcoin Whales Rise, Traders Must Be Patient

As optimistic as market participants are, an analyst at X thinks they may have to wait longer. The analyst cites on-chain data and said The Bitcoin whales ratio is at an “extremely high” level.

This metric, used by chartists to measure the number of large whale trades relative to overall activity, helps gauge how engaged whales, typically institutions and deep-pocketed addresses, are at each price level.

The rising whale ratio means that Bitcoin is likely in the accumulation phase. Here, this whales like to gather on dips and take advantage of them the low prices to increase their coin holdings.

According to the analyst, prices have historically skyrocketed when this happens, especially if the coin is still available weeks or months after the halving.

Bitcoin halved its miner rewards on April 20. The drop in issuance, making the coin deflationary, coupled with rising demand from institutional players gaining exposure via spot Bitcoin ETFs, is expected to positively impact prices in the coming days.

Stablecoins flood into exchanges, breaking $72,000 will be crucial for bulls

Looking at the events in the daily chart, it is clear that sellers have the upper hand, at least from a top-down preview. There is no general reversal of the losses from late July to early August.

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

Still, there are positive developments that the demand could be rekindled and revitalized. The analyst, citing trade data, also said: said There has been an influx of stablecoins to leading exchanges like Binance and Coinbase.

If history shows us, this means that traders are increasing their crypto buying power and are eager to double down. Overall, this is a net positive for Bitcoin and other digital assets.

Main image from Canva, chart from TradingView