Bitcoin is currently experiencing renewed momentum. Significant buying activity by BTC whales indicates a revival of bullish sentiment in the market. A popular analyst says Bitcoin is no longer in the “danger zone.” However, he notes that there is a possibility of falling below the low range.
Market reactions and analysts’ opinions
After a period of relative inactivity, whales have once again begun to significantly increase their Bitcoin stashes. There was a 5.5% increase in whale holdings in May, compared to a more cautious growth of 4.2% in April. Market intelligence firm CryptoQuant drew attention to this change. This movement of whales underlines a change in strategy.
Whales’ behavior often serves as a harbinger for broader market trends. Crypto analyst Axel Adler took a look at on-chain data to shed light on momentum building in the Bitcoin market. The analyst noted that the price gradient oscillator, which measures how fast the market value is growing compared to the realized value, is approaching a critical level. The realized value takes into account the total value of all coins held by the whale based on their purchase time rather than the current market value.
What does Bitcoin on-chain data show?
The fact that these oscillators exceed 3.0 indicates that declines in the 2021 cycle are avoided. This indicates an upward trend. CryptoQuant CEO Ki Young Ju highlighted the significant increase in the 30-day percentage change in whale address holdings and the overall BTC balance held by whales. According to him, during the sharp decline in the market in early May, whales purchased another 47,000 BTC, showing their confidence in the long-term value of Bitcoin.
Analyst Willy Woo has observed significant buying in Bitcoin over the past two months, even though its price has not shown a clear upward trend. This caused some panic among retail investors. However, demand for Bitcoin at the current market price has remained strong.
“Bitcoin is currently out of the ‘danger zone’, but…”
cryptokoin.comAs you follow from , Bitcoin has crossed the 69 thousand dollar mark again. Popular analyst, nicknamed Rekt Capital, says that BTC has passed the “danger zone”. However, the analyst sees it likely that Bitcoin will fall by around 13% from its current value. According to the analyst, based on past cycles, Bitcoin is entering the “danger zone” after the halving event. After that, it drops significantly. After the “danger zone,” Bitcoin enters a “post-halving reaccumulation” phase where it has historically traded sideways within a range. In this context, the analyst makes the following statement:
Since the post-halving ‘danger zone’ ended, Bitcoin has risen to $71,500. However, ~$71,500 is where the macro reaccumulation range has high resistance and is where Bitcoin has been rejected. Consolidation is ongoing and history shows that it will continue for a few more weeks between $60,000 and $70,000.
“No exit from the high range until September!”
The analyst also predicts that, based on historical precedents, Bitcoin may not break out of the $70,000 high range until September. In this regard, the analyst shares the following assessment:
Historically, Bitcoin has always been rejected from the highest range on its first attempt to exit after the halving. Moreover, history shows that this reaccumulation should last much longer. Bitcoin tends to break out of these reaccumulation ranges only up to 160 days after the halving. This means that Bitcoin can only exit the accumulation range in September 2024.
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