Wednesday, November 30, 2022
HomeCryptoBitcoin price drops: is the market turning from accumulation to distribution?

Bitcoin price drops: is the market turning from accumulation to distribution?

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.

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.

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:

In addition, the bitcoin miners have also been distributing their BTC again since August 6, analyst IT Tech from CryptoQuant reports:

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.

Crypto Insiders Premium for bitcoin analytics

Do you want to receive more in-depth bitcoin analyses? Then we would like to refer you to our Discord community for members. Ask analysts questions, chat with our fanatic community and receive daily technical and fundamental analysis of bitcoin, but also other crypto. Through Discord Premium we can share knowledge with each other 24/7 and we try to stay ahead of the market together with our members.

Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences and are for educational purposes only.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular