Cryptocurrency markets are strengthening! The majority of symbols are experiencing negative price movement! The prices of Bitcoin, Ethereum, and several tokens have broken through their temporary support levels! What happened? Why did the markets witness losses exceeding $40 billion in just a few days?
Since the launch of the Spot Bitcoin ETF, inflows to major institutions such as Bitwise, ARK, etc. have reached millions, while BlackRock & Fidelity have recorded volumes of over $1 billion. Despite this, the bulls are spread thin at the moment, as the lack of buying pressure has enabled the bulls to intensify their moves. This is mainly due to the fact that short and medium term traders do not seem confident about the impending rise. Or they want to accumulate at a discount, which could lead to a healthy rally in the future.
According to data from Cryptoquanta significant decrease in the volume of these carriers was recorded, which may be a major reason for the recent withdrawal.
Bitcoin's accumulation phase has reached a 7-year high as markets approach the end of the 2022 bear market. After hitting a high of 74% of the maximum achieved, levels are starting to decline. Interestingly, the decline has intensified since the markets rebounded in the last quarter of 2023. Therefore, this indicates that Bitcoin is still in the distribution phase but is not fully distributed to retail traders. Hence, a short-term correction could quickly approach, as a long-term bull market may not be launched until the distribution phase is fully completed.
Moreover, non-zero Bitcoin addresses are constantly rising, regardless of the current price action. Hence, it indicates that new traders are entering the space at a rocket speed but remain stable for only a short period of time. However, the recent price action indicates that Bitcoin price is about to drop below $40,000 in the short term, after which a major trend reversal may occur.
