Bitcoin is experiencing significant volatility and uncertainty after falling below $60,000. This dip has led to mixed reactions among investors. Some view it as a potential bear trap, indicating that the price could rise soon, while others fear that the market could be heading for a deeper correction.
Despite the conflicting sentiments, critical data from CryptoQuant shows that Bitcoin whales have been heavily accumulating BTC over the past six months.
With the price hovering just above the key $60,000 level, many investors are speculating about current market conditions. Could this extended accumulation period from large investors point to a bullish outlook for the coming months? Or is the market still in danger of falling further?
Analysts are divided, but the whale activity suggests there could be more strength in the market than meets the eye. Understanding this accumulation phase is crucial for navigating traders Bitcoins unpredictable price movements.
Bitcoin Rally in Q4?
According to on-chain data from CryptoQuant, Bitcoin is in a six-month accumulation phase. After hitting a new all-time high of around $73,000 in March, the price entered a declining range that persisted, leading many to wonder if BTC’s decline was part of a larger strategy.
Some analysts suggest that the downward movement was influenced by price manipulation and accumulation tactics by Bitcoin whales and market makers. These major holders have been buying heavily in recent months.
Crypto analyst and investor Axel Adler has highlighted this trend: share a diagram showing the aggressive accumulation of whales. According to his analysis, whales with a balance of more than 1,000 BTC have added as much as 1.5 million BTC to their holdings in the past six months.
This buying activity typically precedes a major bullish move, as large investors pile in during periods of uncertainty and expect a significant price increase soon.
For investors keeping a close eye on Bitcoin, this data paints a promising picture. Many believe this accumulation phase could trigger a rally in the final quarter of 2024, sending BTC soaring to new highs. As whales continue to buy, the potential for a sharp upward move grows, creating a positive outlook for long-term holders who remain optimistic about Bitcoin’s future trajectory.
BTC remains above key demand levels
Bitcoin is currently trading at $61,000, just 1% away from the 4-hour 200 moving average (MA) and 200 exponential moving average (EMA). These levels are critical in determining short-term price action. The key level to watch is $62,000 to continue the bullish momentum.
If BTC can regain the 4-hour MA and EMA and break above the USD 62,000 resistance, a bullish continuation towards USD 66,000 is likely.
However, the market remains uncertain, and if Bitcoin fails to hold above the $60,000 support level and continues towards $62,000, traders could see a deeper correction. In such a scenario, BTC could fall to test lower support levels, with a potential retracement to $57,500.
Investors are keeping a close eye on these key levels as price movement in the coming days is likely to set the tone for Bitcoin’s next big trend. Whether Bitcoin rises above $62,000 or falls below $60,000 will determine whether bulls or bears will dominate the market in the short term.
Featured image of Dall-E, chart from TradingView