Bitcoin’s recent bout of sideways trading around the $8,600 region has resulted in a massive bear-favoring movement, with BTC now plummeting down towards the lower-$8,000 region.
This movement has completely altered the sentiment amongst investors, with many analysts now claiming that the crypto will see significantly further losses as $9,200 begins to look increasingly like a mid-term top.
One prominent analyst who previously predicted multiple major Bitcoin movements seen throughout 2019 is claiming that BTC is now entering a buy zone, and accumulation trends seem to suggest that hundreds of thousands of investors are growing macro bullish on BTC.
It is also important to note that BTC has also been caught in a firm accumulation trend over the past several weeks and months, with the number of wallet addresses holding over 1 BTC recently hitting an all-time high.
Bitcoin Dips Towards $8,350, But Investors Keep Accumulating
At the time of writing, Bitcoin is trading down just under 4% at its of $8,360, which marks a notable decline from its daily highs of over $8,700 that were set yesterday.
Prior to the overnight drop experienced by the cryptocurrency, many analysts and investors had believed that the crypto would see an extension of its upwards momentum, as the bull trend seen throughout 2020 has appeared to mark a massive shift in BTC’s market structure. In the near-term, $8,300 appears to be a key support level, as this is where the crypto was able to fund some support during its latest downturn.“Strong growth of addresses with balance of >= 1 BTC compared to >= 0.1 BTC. Steady accumulation despite the media saying crypto is dead,” Alex Gedevani, a financial analyst at Barclays, noted in a recent tweet.
Strong growth of addresses with balance of >= 1 BTC compared to >= 0.1 BTC Steady accumulation despite the media saying crypto is dead — Alex Gedevani (@alexgedevani)
BTC’s Dip Has Brought It into a Buy Zone, But Uptrend May Stall for 6 Months
Bitcoin incurring steady accumulation from investors isn’t the only bullish factor currently counting in its favor.
Dave The Wave, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that Bitcoin is currently pulling back into its buy zone, which could mean the uptrend will stall until it climbs significantly higher in roughly six months.
“Medium term. Price coming back into the ‘buy zone’. Possible reverse head and shoulders forming. Six months of accumulation likely before a breakout in the second half of the year,” he said while pointing to the below chart.
Medium term. Price coming back into the 'buy zone'. Possible reverse head and shoulders forming. Six months of accumulation likely before a breakout in the second half of the year. — dave the wave🌊🌓 (@davthewave)How Bitcoin trends in the coming several weeks could set the tone for the weeks and months to come, but it is possible that the uptrend seen throughout the past few weeks will stall for some time as investors continue accumulating.
Featured image from Shutterstock.
