After Bitcoin hit a historic high of around $73,800 in mid-March, the cryptocurrency market has entered a period of consolidation for over two months. Cryptocurrency exchange Bitfinex stated that the decline in Bitcoin (BTC) since March has been driven by long-term holders selling off, but data shows that this trend has stalled and investors are now accumulating Bitcoin.
Analysts at Bitfinex stated in a report released on Monday that this corrective phase now appears to be nearing its end. The selling off by long-term holders has been a key reason for Bitcoin’s pullback from its all-time high, but blockchain data shows that these holders have started accumulating Bitcoin for the first time since December 2023.
According to data from CryptoQuant cited by Bitfinex analysts, the number of new accumulation addresses for Bitcoin and Ethereum (ETH) has been steadily increasing over the past month, indicating growing bullish sentiment despite stable prices.
Glassnode, a blockchain data analysis company, also mentioned a similar view in its report last week, stating that the spending pressure from long-term holders has significantly eased in the past week, with investors returning to accumulation mode – suggesting that market volatility is needed to trigger new selling waves.
Market analysis
Cryptocurrency analysis company Swissblock pointed out that $70,000 and $73,000 are significant resistance levels for Bitcoin’s price. The company stated in a report:
Joshua Lim, co-founder of cryptocurrency derivatives proprietary trading firm Arbelos Markets, told CoinDesk that the upcoming week may be one to watch, as key inflation data releases and the Federal Reserve meeting in the United States could intensify volatility in either direction.
Source: Zombit报道