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Bitcoin’s Ongoing Accumulation: Setting the Stage for $130K in 2025?
December 30, 2024
Bitcoin has once again entered an accumulation phase, which can potentially propel its price to a whopping $130k by Q1 2025.
The cryptocurrency has been witnessing multiple corrections over the past few weeks after breaching the $100k mark. Following this decline, its value dipped by nearly 3% in seven days, pushing it under the $94k threshold once more. At the time of writing, Bitcoin was trading at $93.134 with a market capitalization of over $1.84 trillion.
In related news, Michael Saylor’s parody X (formerly Twitter) account posted that Bitcoin has re-entered an accumulation phase. This development could potentially set the stage for a massive breakout in the coming days or weeks. Historically, significant price upticks have followed such accumulation phases.
To better understand this situation, it was necessary to analyze accumulation trends and investor sentiment. According to CryptoQuant’s data, BTC’s net deposits on exchanges were significantly lower compared to the last seven-day average, indicating a rise in buying pressure. Moreover, miners were following a similar trend by selling fewer holdings, as per their one-year average.
As a result of this accumulation phase, it appears that investors are preparing for a major upside movement. The possibility of reaching $130k in Q1 2025 is becoming increasingly plausible.
However, the near-term outlook may not be so rosy. Several metrics were flashing warning signs. For instance, Bitcoin’s NULP suggested that investors are currently in a state of high unrealized profits, indicating a potential risk of a correction. Additionally, the number of coins transferred decreased by -37.70% compared to the previous day, which could negatively impact the token’s price.
Furthermore, the MACD technical indicator displayed a bearish upper hand in the market, suggesting continued downward pressure on the cryptocurrency’s value. Notably, Bitcoin was about to touch the lower limit of the Bollinger Bands, which often leads to a bullish trend reversal.
In conclusion, while this accumulation phase could potentially lead to significant upside momentum in the coming days or weeks, investors must be prepared for short-term bearish sentiments.
Source: ambcrypto.com
