Bitcoin's ascent to potential new highs above $70,000 is increasingly supported by a resurgence in whale accumulation not witnessed since the pre-2020 bull market, according to recent market analysis.

Large Bitcoin holders, colloquially known as whales for their substantial holdings exceeding 1,000 BTC, have ramped up their accumulation activities to levels reminiscent of the bullish trends seen before the 2020 market surge. This surge in accumulation, highlighted in a Bitfinex research report shared with Cointelegraph, underscores a nearly four-year high, marking a pivotal moment in Bitcoin's current trajectory.

Bitfinex analysts elaborated on this bullish sentiment, pointing out:

"Bitcoin 'whales' are now accumulating assets at a pace akin to the period preceding the 2020 bull run. This accumulation has surged to its highest levels in the past two months, culminating in a historic high in their Bitcoin holdings."

Key factors driving this potential breakout include anticipated interest rate cuts and amplified institutional investment, as noted by the analysts:

"Looking ahead, several catalysts could reignite Bitcoin's upward momentum, including heightened daily ETF activity, reduced selling pressure from long-term holders, and increased liquidity potentially spurred by an anticipated rate cut."

Recent market data also reflects significant dynamics influencing Bitcoin's price movements. On June 10, U.S.-based spot Bitcoin ETFs recorded their first net outflows in over 19 consecutive trading days, totaling $64.9 million, according to Farside Investors. The following day, U.S. Bitcoin ETFs saw over $200 million in net outflows, indicating shifting investor sentiments amid volatile market conditions.

Analyzing Bitcoin's immediate price behavior, the short-term holder realized price surged to $63,729 on June 11, according to LookIntoBitcoin. This metric often acts as a dynamic support level during bullish cycles.

Despite these optimistic indicators, Bitcoin's price has faced resistance amid significant sell-offs of older coins, as noted by Thomas Fahrer, co-founder of Apollo:

"The market appears to be in a phase of consolidation until we establish a new baseline. Once achieved, the $65,000–$70,000 range could solidify as a fundamental support level, akin to the $10,000 floor set in 2020."

As Bitcoin continues to navigate these critical thresholds, market observers remain vigilant for signals that could propel the cryptocurrency beyond the elusive $70,000 mark, potentially marking a pivotal moment in its ongoing bull cycle.