Major bitcoin holders are accumulating more of the cryptocurrency as its price is not expected to reach new highs for weeks, cryptocurrency analysts say.
“Bitcoin will likely spend some additional time hovering above the low range area, but overall, the trajectory will be upward to revisit the high range over time,” pseudonymous cryptocurrency trader Reckitt Capital told Cointelegraph.
Recht noted that the daily downtrend — an ongoing pattern of Bitcoin (BTC) price falling on a daily basis — has now “broken,” with its price closing on May 15 at $65,854, up 6.9% from the previous day’s close. According to CoinMarketCap data.
Rekt claimed that Bitcoin has rebounded from the “low range” of reaccumulation – the lower end of the price range at which Bitcoin is bought.
Getting past the all-time high of $73,797 on March 14 “could take weeks,” Recht said.
However, traders are optimistic about a significant price rise if this pattern continues.
“This Bitcoin bull flag is going to be crazy (…) Mark my words,” pseudonymous cryptocurrency trader, Mr. Crypto, declared in a May 15 post.
Despite rebounding from the lower point of the reaccumulation range, demand for Bitcoin whales is back in “acceleration mode” after a two-month downtrend, cryptocurrency analysis firm Cryptoquant said in a report released on May 15.
“Bitcoin demand growth appears to be stabilizing after being on a slowing trend since March,” she said.
Related: Bitcoin price reaches $64.7K as US CPI shows core inflation at 3-year low
The report said that growth in the Bitcoin balance “of frequent holders and in the total balance of large investors appears to be accelerating again.”
However, CryptoQuant claimed that demand will need to accelerate further to sustain this price rise. At press time, Bitcoin was hovering around the opening price of $65,863.
The cryptocurrency analysis firm also noted declining Bitcoin balances across over-the-counter (OTC) trading desks – a direct exchange of cryptocurrencies between two parties outside of established exchanges – indicating strong demand exceeding available supply.
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