The Federal Reserve’s decision to raise interest rates in the face of rising inflation did not receive well from the crypto market, but BTC’s failure to surpass $25,000 has surfaced as macroeconomic concerns continue to take center stage. The primary cryptocurrency Bitcoin (BTC) is currently expressing negative sentiment after initially flashing bullish indicators. The flagship coin is currently battling once more to keep its value above $20,000
Bitcoin price is down almost 68.9% from its all-time high of $69,044. In a bear market, the major cryptocurrency should ideally retrace between 75 and 82% from its previous highs. For example, after the 2017 bull run, BTC fell to an all-time low of around $3,800 in early 2020 and then rebounded to an all-time high in November 2021.
Glassnode’s on-chain data indicates that whales (high volume investors) have begun to stockpile BTC as the bear market comes to a conclusion. When the price of bitcoin experienced its best performing month in 2022 in July, the overall volume of transfers from exchanges reached 137,390.
Will the accumulation increase?
Although recent market volatility has put a halt to whale buying, accumulations are projected to increase by the end of the year. In other words, when investors are sure that the market will return, they remove their assets from the exchanges. This could encourage bitcoin price to gain momentum and break free from the $1,000 range channel on its way to $28,000.
Addresses with 1,000 BTC or more also just stabilized at 2,134 after a downturn. At the time of writing, the metric is still holding at 2,145 addresses in this cohort, suggesting that recovery is progressing. Support at $20,800 may serve as a springboard for a bullish breakout, which would turn the price of bitcoin north.
