Bitcoin (BTC) has fallen sharply since yesterday afternoon’s high. The euphoria of the past few days seems to be waning again, despite positive bitcoin news from Blackrock. bearish signals show that the market may move from an accumulation phase back to a distribution phase and the selling pressure may increase again.
Bitcoin is down 2.7%
Bitcoin broke through $24,000 on Wednesday after US inflation figures came in lower than expected. Bitcoin rose to $24,500 yesterday morning and peaked around $24,900 twice yesterday afternoon. That was the highest price since the crash in mid-June.
However, bitcoin was rejected there and the price then made a rapid plunge. It wasn’t until bitcoin hit back at $24,000 that the decline slowed. However, bitcoin has dipped to $23,850 for a while and the price appears to be struggling this morning to hold on to $24,000.
The BTC price currently stands at $23,970 on KuCoin and $23,275 on Bitvavo. This means that the BTC price is currently 2.7% in the minus.
Will Bitcoin Bullish Pattern Hold Up?
As long as the price holds around this $24,000, the price is still in an upward trend. This trend is characterized by a series of higher highs and higher lows and is called a rising wedge cartridge. This can also be a ascending triangle pattern depending on where you draw the trendline on the chart, as shown below.
$BTC is breaking out of an ascending triangle on low volatility meaning we should be expecting a big move soon enough.
Holding up to the break out is the number one priority where the realistic targets would be 27-29k above or 19k below in case we don’t hold. pic.twitter.com/gEB0Wcr3mW
— whalemap (@whale_map) August 11, 2022
According to Whale Map, bitcoin could break out further into the area between $27,000 and $29,000 if bitcoin holds up in the current pattern. If not, the analyst says bitcoin could fall all the way to $19,000 or lower.
Analyst Il Crypto Capo Continues To Hold On To His bearish price prediction. He still expects a strong rejection around $25,000-$25,500 and then even deeper lows than the aforementioned.
Volume is dying. Channels are not impulses but corrections.
— il Capo Of Crypto (@CryptoCapo_) August 11, 2022
From bitcoin accumulation to distribution
Recently, the bitcoin market has been somewhat characterized by an accumulation phase. However, there are now signs that the market is moving back from an accumulation phase back to a distribution phase, as analyst Joako reports based on data from Glassnode:
#Bitcoin Accumulation Trend Score
After a period of strong accumulation we are starting to see signs of distribution entering August pic.twitter.com/VqSRRcRayX
— Joako.btc (@Blockwise_) August 11, 2022
In addition, the bitcoin miners have also been distributing their BTC again since August 6, analyst IT Tech from CryptoQuant reports:
— IT Tech (@IT_Tech_PL) August 11, 2022
Wallets with 1+ BTC to new record
Nevertheless, the number of addresses with at least 1 bitcoin has a new one all time high reaches. The total number now comes from 893,000 addresses, a 5.1% growth over the past two months, On-Chain College reports.
The number of addresses that hold at least 1 #Bitcoin hit a new all-time high at 893k addresses.
May 2020 – Feb 2022 (21 months): 0% change
Feb 2022 – early June 2022 (4 mos): +4.8% growth
Early June 2022 – Early August 2022 (2 mos): +5.1%
Something to keep an eye on… pic.twitter.com/1tVEjcTXDP
— OnChain College (@OnChainCollege) August 11, 2022
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