After Bitcoin reached a historical high of about $73,800 in mid-March, the cryptocurrency market entered a consolidation phase for over two months. Bitfinex, a cryptocurrency exchange, stated that the decline of Bitcoin since March was driven by long-term holders selling off, but data shows that this trend has stagnated and investors are accumulating Bitcoin.
Analysts at Bitfinex, in a report released on Monday, stated that this correction phase now seems to be coming to an end. The selling off by long-term holders was a key reason for Bitcoin’s pullback from its historical high, but blockchain data shows that these holders have started accumulating Bitcoin for the first time since December 2023.
Bitfinex analysts cited data from CryptoQuant, adding that in the past month, the number of new Bitcoin and Ethereum accumulation addresses has also been steadily increasing, indicating an increasing bullish sentiment despite stable prices.
According to a previous report by on-chain data analysis company Glassnode, similar views were mentioned in their report last week, pointing out that the spending pressure of long-term holders has significantly eased over the past week, indicating a return to accumulation mode by investors. This suggests that market volatility is needed to trigger a new wave of selling.
Market analysis
Cryptocurrency analysis company Swissblock pointed out that the price levels of $70,000 and $73,000 have formed obvious resistance for Bitcoin’s price. The company stated in a report:
Joshua Lim, co-founder of cryptocurrency derivatives proprietary trading firm Arbelos Markets, told CoinDesk that the upcoming week may be an interesting one to watch, as key inflation data releases and the Federal Reserve meeting in the United States could intensify volatility in any direction.
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