Bitcoin Consolidates Within $10,000 Range Amid Trader Uncertainty and Whale Accumulation
Summary:
Bitcoin's value has remained within a $10,000 range for over ten weeks, reflecting a period of trader uncertainty. The cryptocurrency hit a post-peak consolidation phase, with Glassnode's report revealing subdued weekly, monthly, and quarterly performance as compared to previous cycles. The consolidation phase has seen a reduction in Bitcoin transfers from personal custody to exchanges, indicating an accumulation by large holders. Market players now look to lower levels for Bitcoin’s support, with IntoTheBlock's data highlighting the significant support at the $60,000 price point.
Bitcoin's value has been fluctuating within a $10,000 range for over ten weeks, marking a period of trader uncertainty, with attempts to surpass $72,000 or drop beneath $60,000 being unsuccessful. The cryptocurrency's cost decreased by 0.25% to roughly $67,522 as of May 29, amid low trading volumes, indicating an extended consolidation phase. According to data from Cointelegraph Markets Pro and TradingView, the Bitcoin has been seesawing between $60,000 and $72,000 for almost ten weeks, finding it difficult to consistently sustain its previous peak prices. Analyst Daan Crypto Trades explains that Bitcoin has historically required 4-8 weeks of consolidation around peak values before experiencing significant price movements.
Bitcoin's post-peak phase, where it reached $73,835, was marked by a consolidation period. According to Glassnode's "The Week On-chain" report published on May 28, recent Bitcoin performance on a weekly, monthly, and quarterly basis has been relatively low-key compared to previous cycles. Traditionally, Bitcoin demonstrates strong price increases of over 20% over these periods within a 90-day window, indicating a steady uptrend. However, only five days during the last quarter have satisfied this condition, hinting at a more balanced market.
Parallel to Bitcoin's neutral performance, there has been a reduction in transfers of the cryptocurrency from personal custody to exchanges. Between April 31 and May 28, the number of wallets depositing Bitcoin to exchanges decreased from 52,968 to 25,904, suggesting an accumulation of Bitcoin by 'whales' (entities holding over 1,000 Bitcoins), thereby reducing market volatility.
Data gathered by IntoTheBlock reveals a rise in the number of wallets holding between $100,000 and $10 million worth of Bitcoin during the last quarter. Now, market players are setting their sights on lower levels for Bitcoin’s support. Bitcoin's price stability seems to exceed the $65,000 support level on smaller timescales. Michaël van de Poppe, founder of MN Trading, posits that Bitcoin may oscillate between $67,000 and $70,000, with $60,000 serving as a critical psychological crutch.
According to IntoTheBlock's In/Out of the Money Around Price (IOMAP) model, Bitcoin's $60,000 support zone is significant, with around 1.59 million addresses having previously purchased approximately 478,800 Bitcoin at this price point. Several weeks after the halving, Bitcoin’s price could maintain its consolidation within the $60,000 and $70,000 boundaries before embarking on a parabolic upward trend. Caution must be exercised, and comprehensive research undertaken when making investment and trading decisions.
Published At
5/29/2024 7:29:08 PM
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