Bitcoin (BTC) has experienced a notable decline of more than 10% over the past week, dipping below the $62,778 price mark. While such price corrections are common in market cycles, analysts suggest that this downturn may not be coming to a close, especially with the highly anticipated token halving event just two days away.
According to findings by renowned cryptocurrency analyst Ali Martinez, over 27,700 BTC, valued at approximately $1.72 billion, was recently transferred into “accumulation wallet addresses”. This movement occurred shortly after the token’s price fell below the critical $63,000 support level.
Accumulation addresses are defined by specific criteria, including the absence of outgoing transactions, a wallet balance of more than 10 BTC, reception of at least two incoming transactions, a single transaction in the past seven years, and the exclusion of accounts associated with miners or centralized crypto exchanges.
The surge in accumulation signals a keen interest from crypto investors in amassing the world’s largest cryptocurrency in anticipation of a potential price surge. Analysis by CryptoQuant underscores this trend, revealing that Bitcoin inflows into accumulation addresses have reached an all-time high, surging from 25,100 BTC to 27,700 BTC.
Supporting this sentiment, crypto analyst and trader ‘Rekt Fencer’ provided insights into the phases surrounding Bitcoin’s long-awaited halving event. According to the trader, the coin typically undergoes a bear market phase preceding an accumulation phase, followed by a pre-halving breakout phase. This phase often marks the introduction of the post-halving alt season or a significant buying market—or a distribution phase.
The ‘re-accumulation’ phase, as described by ‘Rekt Fencer,’ tends to last several months, during which Bitcoin maintains a sideways trajectory without significant trend breaks. If historical patterns repeat themselves, the trader claims the cryptocurrency could see elevated trading levels around the $50K range until October of this year.
Disclaimer: This report is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
