Bitcoin analysts foresee a potential price increase as recent data reveals an accumulation trend. According to On-Chain College, the accumulation rate of long-term Bitcoin investors has reached a peak not seen in the past 15 months. This new trend could push Bitcoin’s value beyond $66,000 by September.
Rising Interest in Bitcoin?
Glassnode’s recent report highlights a significant return of Bitcoin investors to accumulation mode over the last month. The Accumulation Trend Score (ATS) has hit its maximum value of 1.0, indicating substantial market activity. This tool serves as a heatmap to analyze behavior among different Bitcoin holder groups, emphasizing the current bullish sentiment.
Meanwhile, CryptoQuant writer Axel Adler noted that 25% of Bitcoin’s total supply was acquired within the $58,000 to $73,000 price range, equating to around $300 billion. This indicates strong market confidence at these price levels.
Market Predictions and Trends?
Despite the ongoing accumulation, Bitcoin experienced a dip below $58,000 on August 16 after a 4.2% decline last week. However, technical analyst Titan believes Bitcoin could reach $66,000 by September, based on historical patterns following halving events. This prediction follows the trend that the fourth month post-halving typically ends on a high note.
Renowned analyst Rekt Capital also pointed out that Bitcoin needs to break through a crucial resistance level at around $61,700 to sustain any upward momentum. The current consolidation between historical wedge peaks acts as both resistance and support, which could determine the next price movement.
Key Inferences
– Bitcoin’s long-term investors are significantly contributing to the recent accumulation.
– A quarter of Bitcoin’s total supply was purchased within the $58,000 to $73,000 range.
– Historical patterns suggest a potential price surge to $66,000 by September.
The next significant resistance level sits at $59,000. Coinglass data suggests that an upward move could trigger the liquidation of short positions worth over $700 million. If Bitcoin surpasses $59,300, short liquidations could potentially exceed $1 billion, leading to further upward pressure on prices.