Is Bitcoin (BTC USD) In Accumulation Or Redistribution?
The post Is Bitcoin (BTC USD) In Accumulation Or Redistribution? appeared on BitcoinEthereumNews.com.
Bitcoin (BTC USD) recent trading patterns suggested potential scenarios of either accumulation or redistribution, pivotal concepts derived from the Wyckoff method which distinctly influence market outlooks. Bitcoin price reached a high near $98,647, marking a significant resistance zone. Post-peak, a consolidation phase ensued. The same was evidenced by frequent tests of support around $94,000, illustrating potential accumulation behaviors typically indicative of bullish sentiment. This phase was characterized by the ‘Spring’ and ‘Test’ phases in the Wyckoff scheme, where Bitcoin prices stabilize after a decline. BTC USDT 4-hour chart | Source: Trading View Conversely, the redistribution schematic in the Wyckoff method, featuring a series of lower peaks at $98,000, raised the possibility of a bearish outcome. This scenario could lead to a ‘Mark Down’ phase if the pattern repeats, indicating sellers outweighing buyers, leading to potential declines. – Advertisement – Bitcoin’s immediate future in the first quarter of 2025 hinged on its ability to maintain support above the $94,000 level or face resistance near $98,647. Bitcoin (BTC USD) Short-Term SOPR Value Further analysis revealed the interaction between Long-Term Holders (LTHs) and Short-Term Holders (STHs), particularly evident across three distinct figures. Initially, the transfer of Bitcoin supply from LTHs to STHs, a pattern often linked to the peaks of market cycles, is critical in determining future price movements. The demand from STHs continued to bolster Bitcoin’s price, suggesting a robust underpinning despite the sell-off from LTHs. The detailed analysis of realized prices for STHs across various periods revealed key thresholds that currently act as support and resistance levels. BTC short-term SOPR | Source: CryptoQuant Notable among these are the realized prices at $41,000 generally, stretching up to $85,000 for shorter terms and lowering to $60,000 over extended periods. Further insights from the STH SOPR ratio at 1, indicated that selling Bitcoin (BTC…
Filed under: News - @ January 5, 2025 9:25 pm