The Federal Reserve’s decision to raise interest rates in the face of rising inflation did not receive well from the crypto market, but BTC’s failure to surpass $25,000 has surfaced as macroeconomic concerns continue to take center stage. The primary cryptocurrency Bitcoin (BTC) is currently expressing negative sentiment after initially flashing bullish indicators. The flagship coin is currently battling once more to keep its value above $20,000
From its all-time high of $69,044, the price of bitcoin has fallen by nearly 68.9%. In a bear market, the flagship cryptocurrency should ideally retrace by between 75 and 82% from its previous high. For instance, after the 2017 bull run, BTC fell to its absolute lowest point of roughly $3,800 in early 2020 before mounting a rally to its all-time high in November 2021.
Glassnode’s on-chain data indicates that whales (high volume investors) have begun to stockpile BTC as the bear market comes to a conclusion. When the price of bitcoin experienced its best performing month in 2022 in July, the overall volume of transfers from exchanges reached 137,390.
Will the accumulation increase?
Although the market’s recent volatility halted the whales’ shopping binge, accumulation is anticipated to increase through the end of the year. In other words, when investors are certain that the market will rebound, they tend to remove their assets from exchanges. This could encourage the price of Bitcoin to gain momentum and break free of the $1,000 range channel on the path to $28,000.
Addresses with 1,000 BTC or more also just stabilized at 2,134 after a downturn. At the time of writing, the metric is still holding at 2,145 addresses in this cohort, suggesting that recovery is progressing. Support at $20,800 may serve as a springboard for a bullish breakout, which would turn the price of bitcoin north.
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