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 in Bitcoin since March was driven by long-term holders selling off, but data indicates that this trend has stalled and investors are accumulating Bitcoin.
According to an analyst from Bitfinex in a report released on Monday, this corrective phase seems to be nearing its end. The selling pressure from long-term holders was the key reason for the pullback from Bitcoin’s all-time high, but blockchain data shows that these holders have started accumulating Bitcoin for the first time since December 2023.
Bitfinex analyst cited data from CryptoQuant to supplement that in the past month, the number of new accumulation addresses for Bitcoin and Ethereum has been continuously increasing, indicating an increasing bullish sentiment despite the stable prices.
According to a previous report by on-chain data analytics firm Glassnode, long-term holders’ spending pressure has significantly eased in the past week, and investors have returned to accumulation mode, suggesting that market volatility is needed to trigger new selling waves.
Swissblock, a cryptocurrency analysis company, pointed out that the price levels of $70,000 and $73,000 have formed significant 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 coming 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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