Bitcoin is experiencing significant volatility and uncertainty after falling below the $60,000 level. This decline sparked mixed reactions among investors. Some view this as a potential bear trap, indicating that the price may rise soon, while others fear that the market may be heading towards a deeper correction.
Despite the mixed feelings, important data from CryptoQuant reveals that Bitcoin whales have accumulated Bitcoin significantly over the past six months.
As the price is hovering above the key level of $60,000, many investors are speculating on the current market conditions. Could this long period of accumulation by major holders indicate a bullish outlook for the coming months? Or is the market still at risk of further decline?
Analysts are divided, but whale activity suggests there may be more power in the market than meets the eye. Understanding this accumulation phase is crucial for traders navigating unpredictable Bitcoin price movements.
Bitcoin rises in the fourth quarter?
Bitcoin has been in a 6-month accumulation phase, according to on-chain data from CryptoQuant. After hitting all-time highs of around $73,000 in March, the price entered a bearish range that persisted, making many wonder if Bitcoin’s decline was part of a larger strategy.
Some analysts suggest that the downward movement was influenced by price manipulation and accumulation methods used by Bitcoin whales and market makers. These large holders have been buying heavily over the past few months.
Cryptocurrency analyst and investor Axel Adler has highlighted this trend, Share the chart They show the aggressive build-up of whales. According to his analysis, whales with balances of more than 1,000 BTC have added a staggering 1.5 million BTC to their holdings in the past six months.
This buying activity is usually preceded by a significant upward movement, as large holders accumulate during periods of uncertainty, anticipating a significant price rise soon.
For investors who watch Bitcoin closely, this data paints a promising picture. Many believe this accumulation phase could lead to a rally in the last quarter of 2024, pushing Bitcoin to new highs. As whales continue to buy, the likelihood of a sharp upward move increases, creating a positive outlook for long-term holders who remain optimistic about Bitcoin’s future path.
BTC contract is above the 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 crucial for determining short-term price action. The key level to watch is $62,000 for continued bullish momentum.
If BTC can reclaim the 4-hours moving average and exponential moving average (EMA) and break above the $62,000 resistance level, the uptrend towards $66,000 is likely to continue.
However, the market remains uncertain, and if Bitcoin fails to hold above the $60,000 support level and does not rise towards $62,000, traders could see a deeper correction. In such a scenario, Bitcoin may decline to test lower support levels, with a possible bounce to $57,500.
Investors are watching these key levels closely as the price action in the coming days is likely to set the tone for Bitcoin’s next major trend. Whether Bitcoin price rises above $62,000 or falls below $60,000 will determine whether the bulls or bears will dominate the market in the short term.
Featured image by Dall-E, chart from TradingView
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