bitcoin is experiencing significant volatility and uncertainty after falling below the $60,000 mark. This drop has caused mixed reactions among investors. Some see it as a potential bearish trap, indicating the price could rise soon, while others fear the market could be headed for a deeper correction.
Despite mixed sentiments, critical data from CryptoQuant reveals that bitcoin whales have accumulated a large amount of btc over the past six months.
As the price settles just above the key $60,000 level, many investors are speculating on the current market conditions. Could this prolonged period of accumulation by large holders indicate a bullish outlook for the coming months? Or is the market still at risk of further declines?
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 traders navigating bitcoin's unpredictable price movements.
bitcoin Rally in Q4?
bitcoin has been in a 6-month accumulation phase, according to on-chain data from CryptoQuant. After reaching new all-time highs of around $73,000 in March, the price entered a falling range that has persisted, leaving many wondering if btc's drop was part of a broader strategy.
Some analysts suggest that the downward movement was influenced by price manipulation and accumulation tactics employed by bitcoin whales and market makers. These large holders have been buying a lot over the past few months.
crypto analyst and investor Axel Adler has highlighted this trend, x.com/AxelAdlerJr/status/1844374257465438669″ target=”_blank” rel=”noopener nofollow”>sharing a graph x.com/AxelAdlerJr/status/1844374257465438669″ target=”_blank” rel=”noopener nofollow”>showing the aggressive accumulation of whales. According to their analysis, whales with balances of more than 1,000 btc have added a staggering 1.5 million btc to their holdings in the last six months.
This buying activity usually precedes a major bullish move, as large holders accumulate during periods of uncertainty, expecting a significant price increase shortly.
For investors who follow bitcoin closely, this data paints a promising picture. Many believe this accumulation phase could trigger a rally in the final quarter of 2024, taking btc to new highs. As whales continue to buy, the potential for a strong bullish move grows, creating a positive outlook for long-term holders who remain optimistic about bitcoin's future trajectory.
btc remains above key demand level
bitcoin is currently trading at $61,000, just 1% away from the 200 4-hour moving average (MA) and the 200 exponential moving average (EMA). These levels are critical in determining near-term price action. The key level to watch is $62,000 for the bullish momentum to continue.
If btc can reclaim the MA and 4-hour EMA and overcome the resistance at $62,000, a bullish continuation towards $66,000 is likely.
However, the market remains uncertain, and if bitcoin fails to hold above the $60,000 support level and rise towards $62,000, traders could see a deeper correction. In such a scenario, btc may fall to test lower support levels, with a possible pullback to $57,500.
Investors are watching these key levels closely, as the price movement in the coming days will likely 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, TradingView chart
