Bitcoin in accumulation mode – when will the next monster breakout come?
The price of Bitcoin has completely declined after exploding to around $38,000 in the last 24 hours. BTC initially rose after Tesla CEO Elon Musk put the word „Bitcoin“ in his Twitter bio.
Since then, BTC has fallen back to around $33,000, settling just below $34,000 in the last few hours.
Will bitcoin recover soon?
After falling from $38,000 to $33,000, Bitcoin has consolidated by Bitcoin Millionaire review with no real direction, up or down.
„I think there is a decent chance that BTC will rise again by the weekend. Hourly looks like accumulation. I have unhedged/buyback some place here. Stay away from derivatives for now as weekends can get choppy.“
Another pseudonymous trader, known as „DonAlt“, also states that Bitcoin could see a big upside move if it moves above $34,000.
„Momentum plays on the bull side got completely flushed when Elon Musk’s bio change came to nothing, and then continuation plays on the bear side got choppy. I’m watching the range below (green zones), any convergence through the boundaries and I would expect a significant bounce.“
However, until Bitcoin sees a clear breakout above the short-term resistance level, analysts expect further consolidation.
Longer term, analysts say Bitcoin is on track to see a medium-term uptrend. Zoran Kole, a bitcoin trader and technical analyst, explains:
„Haven’t updated this in a few weeks $BTC HTF thesis. Zoom out. It will be all good anon.“
Why BTC is stagnating
Before the initial rally to $38,000, there was a confluence of many on-chain indicators that showed a more bearish trend.
Selling pressure from miners increased and whales deposited a lot of BTC on exchanges. The combination of the two factors meant that external selling pressure on Bitcoin was high.
This may have been the reason why Bitcoin was probably rejected from the resistance level at $38,000. Many traders believe that Bitcoin would need to recapture $38,000 to confirm a bullish short-term trend reversal.
Although Bitcoin briefly rose above $38,000, it struggled to remain stable above it. Therefore, BTC was vulnerable to a quick correction as it experienced a rapid rise to the $38,000 area.
In the foreseeable future, there is a high probability that Bitcoin (Go to Buy Bitcoin Guide) will consolidate with low volatility. This would likely lead to altcoins and DeFi tokens seeing high volatility and significant upside potential.
In the meantime, the key could be the influx of stablecoin deposits into cryptocurrency exchanges, which could signal the entry of outsourced capital.