Bitcoin Price Breaks 2024-Like Accumulation Pattern, Analysts Warn of $100K Breakout Possibility
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Bitcoin Flashes 2024-Like Accumulation Pattern – Analysts Say $100K Breakout Could Be Next
The crypto market has been abuzz with excitement as Bitcoin’s recent price action has triggered a crucial accumulation pattern reminiscent of the 2024 rally. According to on-chain metrics and expert analysis, this development could potentially be followed by a significant price surge, potentially breaking the coveted $100K barrier.
Recently, BTC witnessed an interesting accumulation trend similar to that seen in early and late 2024. This phenomenon was highlighted by CryptoQuant, which noted that short-term holders (1 day to 1 week) are aggressively accumulating Bitcoin. More specifically, this trend has resulted in a higher high formation, mirroring patterns observed during Q1 and Q4 of the previous year.
The implications of such an accumulation pattern cannot be overstated. Historically, similar trends have preceded significant price rallies, including those that propelled BTC to $69K in 2020-2021. In this instance, if the trend continues, Bitcoin may be poised to break above $100K and enter a strong upward phase.
Furthermore, other on-chain metrics suggest that long-term holder supply is rising. This means that major selling pressure from profitable long-term holders (holding BTC for over six months) has begun to ease. A notable observation made by prominent analyst Robert Breedlove highlights the fact that over the past 30 days, long-term holders have accumulated approximately 150,000 more BTC. With fewer sellers in the $80K to $100K range, Bitcoin may be primed for a significant price surge.
In addition to these on-chain metrics, technical indicators also point towards a bullish scenario. The 4-hour Super Trend indicator currently sits in ‘buy’ mode, indicating that bulls are in control of market sentiment. Furthermore, the price chart remains above key moving averages, signifying that bulls have taken over the narrative.
As Bitcoin continues its ascent towards $100K, it is essential for investors to consider the role of US dollar liquidity in driving this upward momentum. The Blockware chart reveals a positive correlation between BTC and US dollar liquidity. This historical relationship suggests that an increase in liquidity could further fuel the upward momentum.
The accumulation pattern observed on the charts, combined with these fundamental factors, paints a compelling narrative for Bitcoin’s potential to reach $100K.
Source: https://ambcrypto.com/bitcoin-flashes-2024-like-accumulation-pattern-analysts-say-100k-breakout-could-be-next/
