Crypto News

Bitcoin Accumulation Phase Signals Potential Rebound

Bitcoin is currently in an accumulation phase, with significant activity suggesting strong potential for a rebound. Over the past month, 358,000 BTC has shifted to permanent holder addresses, reflecting a long-term bullish sentiment among large investors.

In July alone, global spot ETF inflows amounted to 53,000 BTC, indicating substantial institutional interest.

Despite not all remaining BTC being in custody wallets, the accumulation by whales is at an unprecedented level. Meanwhile, retail traders are leveraging heavily to buy the Bitcoin dip, creating a $30 million liquidation pool at $63,800. This aggressive leverage use suggests potential volatility in the short term.

The TD Sequential, a technical indicator, has presented a buy signal on the hourly chart for Bitcoin, suggesting a possible rebound.

Bitcoin could surge to $65,200, which would liquidate $42.16 million in short positions, providing a significant upward momentum.

Bitcoin Decreasing Demands From US Investors While Net ETF Inflow Turns Positive 

However, the Bitcoin Coinbase Premium Index has turned negative, signaling decreasing demand from US investors. This shift may reflect cautious sentiment or profit-taking among US-based traders.

In the ETF market, Bitcoin saw a positive net flow of $45 million on July 24, rebounding from a brief negative period. BlackRock’s Bitcoin ETF (IBIT) experienced the largest inflow, attracting $66 million, highlighting continued institutional interest.

Overall, while Bitcoin’s accumulation phase and whale activity suggest a bullish outlook, the market remains volatile due to high leverage and mixed signals from different investor segments. The potential for a significant rebound is evident, especially if Bitcoin can clear key resistance levels and trigger further short liquidations. Investors should stay vigilant and consider the broader market dynamics as Bitcoin navigates this crucial phase.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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