Over 27,700 BTC ($1.72 Billion) Moves into Accumulation Addresses Amidst Bitcoin’s Dip Below $63,000

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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April 17, 2024

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Amidst Bitcoin’s recent dip below $63,000, an April 18 report by technical analyst Ali Martinez revealed a surge in BTC accumulation, signifying resilience among Bitcoin holders.

Bitcoin braces for its Upcoming Halving Event; Volatility Continues to Mark its Trajectory

Ali Martinez highlighted this trend on X

, showcasing a chart depicting the movement of over 27,700 BTC (approximately $1.72 billion) into accumulation addresses.

This influx amidst Bitcoin’s price dip represents a new all-time high, exceeding the previous record of 25,100 BTC on March 22, 2024, and signifying anticipation of future gains among investors.

Over 27,700 $BTC, worth around $1.72 billion, have flown into accumulation addresses as #Bitcoin dropped below $63,000! pic.twitter.com/ksrk0qNp41

— Ali (@ali_charts) April 18, 2024

This trend is further supported by data from CryptoQuant, which indicates a record-high inflow of Bitcoin into accumulation addresses. Surpassing previous highs, this data indicates a notable shift towards long-term holding strategies among investors.

Defined by specific criteria, including balances exceeding 10 BTC, no outgoing transactions, and exclusion of exchange or miner-associated accounts, these BTC accumulation addresses suggest a strategic pivot towards long-term holding despite market fluctuations.

The surge in accumulation signals enduring confidence in Bitcoin’s long-term potential, positioning it for a re-accumulation phase in the coming months after halving.

BTC Accumulation and Post-Halving Predictions

Notably, crypto analyst ‘Rekt Capital’ proposes that Bitcoin’s current correction phase may soon give way to a re-accumulation period post-halving. Historical patterns suggest that a BTC accumulation phase often leads to a period of price consolidation following halving events.

#BTC

3 Phases of The Bitcoin Halving

1. Final Pre-Halving Retrace

Bitcoin has produced two -18% retraces prior to the Halving in the span of just over a month

In mid-March, BTC pulled back -18% before recovering to $70000 and now in mid-April BTC has retraced -18% again

This… pic.twitter.com/2BKBQXpPOV

— Rekt Capital (@rektcapital) April 17, 2024

Bitcoin’s price typically remains range-bound for approximately five months post-halving, similar to what we observed in previous cycles. If history repeats itself, Bitcoin could trade within the high $50k range until around October, reflecting a consolidation phase before potential upward momentum.

Bitcoin Price Analysis and Resistance Levels

Bitcoin has shown resilience by trading slightly below $64,000, marking a marginal increase of 4.3% within the past 24 hours.

Jason Pizzino, a renowned crypto analyst, has offered insights into Bitcoin’s price movements as well, identifying key resistance levels at $67,000, $69,000, and $71,000. He emphasizes the importance of a BTC accumulation and consolidation above $67,000 for sustained bullish momentum.

However, Pizzino also warns of potential downside risks if Bitcoin fails to maintain support above the $59,000 to $60,000 range, potentially leading to a correction towards the low to mid $50,000 range or even lower.

Pizzino uses historical data to contextualize current market dynamics, drawing parallels to past halving events and aiding investor decision-making. His analysis echoes Rekt Capital’s observations regarding the potential BTC accumulation and price fluctuations following halvings.

Recent data also indicates substantial capital outflows from Bitcoin ETFs, notably Grayscale’s Bitcoin Trust (GBTC), contributing to the cryptocurrency’s decline.

Bitcoin miners’ continuous selling before and after the halving event exerts additional downward pressure on the market.