- Bitcoin
has remained relatively stagnant for several weeks and has failed to surpass the $26,000 level. This slow movement has affected the entire market as interest has waned. - CryptoCon pointed out a metric that suggests a potential change in Bitcoin’s price trend. According to the analysis, Bitcoin typically enters a bull market shortly after crossing the 50 level on the weekly Relative Strength Index (RSI).
- While the supply of Bitcoin on exchanges has been decreasing, indicating an accumulation trend, there may have been a shift in this trend during the recent price correction, suggesting that investors were selling their BTC.
According to Bitcoin cycle theories, the price trend could soon reverse, and an upward movement could begin: The accumulation period is ending!
Bitcoin Price Stuck at $26,000
Bitcoin has remained relatively stagnant for several weeks and has failed to surpass the $26,000 level. This slow movement has affected the entire market. However, data suggests that there is a possibility of a change in the trend in the coming days.
After reaching the $27,000 level, the crypto king’s price experienced another price correction and was pushed below $26,000 once again. As of the time of writing, BTC is trading at around $25,740 and has a market value of over $500 billion.
CryptoCon, however, highlighted a metric that suggests a potential change in Bitcoin’s price trend. According to the analysis, Bitcoin typically enters a bull market shortly after crossing the 50 level on the weekly Relative Strength Index (RSI). Historically, following a fake crossover, the weekly RSI has followed bull markets when it returned from two support levels.
As of now, BTC’s weekly RSI is at approximately 43, which is close to the first support level. Therefore, if it manages to make a turnaround, the likelihood of a price increase is high. BTC’s Chaikin Money Flow (CMF) showed a slight increase, increasing the likelihood of a turnaround. However, since its MACD remained in a bearish outlook, it indicated that the RSI could be pushed toward the second support level.
Bitcoin Accumulation Period Ending
While there is a possibility of Bitcoin’s price becoming volatile, other data sets indicate that the accumulation period may be coming to an end soon. According to the November 28th cycle theory, Bitcoin’s accumulation period is ending within the next few months.
This also aligns with Bitcoin’s upcoming halving, which could lead BTC to reach a new all-time high. Historically, Bitcoin’s price has always reached new peaks a few months after halvings.
According to Santiment’s chart, investors have taken advantage of Bitcoin’s slow-moving price during the accumulation period and have been accumulating the asset. When Bitcoin’s price dropped, the outflow from exchanges increased, indicating that investors were buying the cryptocurrency.
Additionally, whale transactions also increased during such events, suggesting that large players were accumulating as well. Furthermore, while Bitcoin’s supply on exchanges decreased, indicating an accumulation trend, there may have been a shift in this trend during the recent price correction, suggesting that investors were selling their BTC.
