Bitcoin is experiencing significant volatility and uncertainty after falling below the $60,000 level. This decline caused mixed reactions among investors. Some see this as a potential bear trap, indicating that the price may soon rise, while others fear that the market may be headed for a deeper correction.
Despite the conflicting sentiment, critical data from CryptoQuant reveals that Bitcoin whales have accumulated immense amounts of BTC over the past six months.
With the price hovering just above the key $60,000 level, many investors are speculating on current market conditions. Could this extended period of accumulation by immense holders signal an sanguine outlook for the coming months? Or is the market still at risk of further declines?
Analysts are divided, but whale activity suggests there may be more strength in the market than you might think. Understanding this accumulation phase is crucial for traders navigating Bitcoin’s unpredictable price movements.
Bitcoin Rally in Q4?
According to CryptoQuant data, Bitcoin is in a 6-month accumulation phase. After reaching recent all-time highs around $73,000 in March, the price has entered a withering range that has been holding, leaving many wondering whether BTC’s decline was part of a broader strategy.
Some analysts suggest that the downward move was influenced by price manipulation and accumulation tactics used by Bitcoin whales and market makers. These immense holders have been buying heavily over the past few months.
Cryptocurrency analyst and investor Axel Adler highlighted this trend, sharing chart showing aggressive accumulation of whales. According to his analysis, whales with a balance of over 1,000 BTC have added a staggering 1.5 million BTC to their holdings over the last six months.
This buying activity usually precedes a immense upward move, as immense holders accumulate shares during periods of uncertainty, expecting a significant price augment soon.
For investors closely watching Bitcoin, this data paints a promising picture. Many believe that this accumulation phase could trigger a rally in the last quarter of 2024, pushing BTC to recent highs. As whales continue to buy, the potential for a piercing move higher increases, creating a positive outlook for long-term holders who remain sanguine about Bitcoin’s future trajectory.
BTC remains above key demand level
Bitcoin is currently trading at $61,000, just 1% off the 200 4-hour 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 for the uptrend to continue.
If BTC manages to regain the 4-hour MA and EMA and break the resistance at $62,000, a bullish continuation towards $66,000 is likely.
However, the market remains choppy and if Bitcoin fails to hold above the $60,000 support level and rise towards $62,000, investors could see a deeper correction. In such a scenario, BTC could fall, testing lower support levels, with a potential pullback to $57,500.
Investors are keeping a close eye on these key levels as price movement in the coming days will likely set the tone for Bitcoin’s next major trend. Whether Bitcoin rises above $62,000 or falls below $60,000 will determine whether bulls or bears dominate the market in the compact term.
Featured image from Dall-E, chart from TradingView
