Bitcoin (BTC) has experienced a cooling off in its price recently, as the entire crypto market enters a period of consolidation at the beginning of the new week. Currently trading at $27,199.63, with a negligible 0.42% loss, the premier digital currency maintains a somewhat bearish outlook with a weekly loss of 0.37%.
Despite this outlook, on-chain data indicates a significant accumulation level for Bitcoin. Crypto analyst @Ali_Charts reveals that the digital currency is experiencing intense accumulation around the price levels of $26,360 and $27,160. In total, approximately 2.36 million addresses have purchased around 1 million BTC within this range. This accumulation is notably recent and may begin to impact the price of the cryptocurrency in the upcoming days.
Over the past month, Bitcoin has traded at a low of $25,878.43 and struggled to break above the $30,000 resistance point due to market uncertainties. The recent accumulation trend may contribute to supply scarcity, potentially pushing Bitcoin beyond its current monthly high of $29,820.13.
Various protocol fundamentals are expected to facilitate a more defined growth path for Bitcoin this month. One significant development is the blocking of the proposed 30% tax on Bitcoin mining in the debt ceiling bill, bringing relief to the market. This could offer substantial leverage to investors, especially those who have been hesitant to invest in the industry due to unfavorable laws.
Another factor that could influence Bitcoin’s price growth is its upcoming halving event. While this will not occur until April next year, the soon-to-happen Litecoin halving may prompt an early bullish buy-up of Bitcoin as well. As such, the anticipation for a considerable price growth in June is high. However, according to Arthur Hayes, the real rally for this year will most likely begin in October.
It is important to note that the content presented here reflects the author’s personal opinion, and market conditions can change rapidly. As always, thorough market research should be conducted before investing in cryptocurrencies. The author and publication hold no responsibility for personal financial losses.
Source: Coingape
