Author: Ciaran Lyons, CoinTelegraph; Translated by: Deng Tong, Jinse Finance
Cryptocurrency analysts say a large number of Bitcoin holders are accumulating more of the cryptocurrency as its price is not expected to reach new highs for several weeks.
“Bitcoin may spend more time hovering above the range lows, but generally speaking, the price trajectory of Bitcoin will be upwards over time, revisiting the range highs,” anonymous cryptocurrency trader Rekt Capital told Cointelegraph.
Rekt noted that the daily downtrend — a pattern in which Bitcoin’s price continues to fall each day — has now “broken,” with its price closing at $65,854 on May 15, up 6.9% from the previous day’s close, according to data from CoinMarketCap.
Bitcoin's daily decline reversed on May 15. Source: Rekt Capital
Rekt claims that Bitcoin has rebounded from its “range low” (the lower limit of Bitcoin’s buying price range) to reaccumulate.
Rekt said breaking the March 14 all-time high of $73,797 “might still be weeks away.”
However, traders are optimistic that if this pattern continues, prices will rise sharply.
“ This Bitcoin bull flag breakout is going to be insane … mark my words,” declared anonymous cryptocurrency trader Mister Crypto in a May 15 post.
Bitcoin is currently trading at $65,863. Source: CoinMarketCap
Cryptocurrency analytics firm CryptoQuant said in a May 15 report that despite rebounding from the lows of the re-accumulation range, Bitcoin whale demand is once again in “acceleration mode” after a two-month downward trend.
“Bitcoin demand growth appears to be stabilizing after a decelerating trend since March,” it said.
“The growth in total Bitcoin balances of permanent holders and large investors appears to be in acceleration mode again,” the report said.
Bitcoin whales are in “acceleration mode” again. Source: CryptoQuant
However, CryptoQuant claims that demand needs to accelerate further to sustain price gains. As of the time of publishing, Bitcoin is hovering near its opening price of $65,863.
The crypto analytics firm also noted that over-the-counter (OTC) platforms — direct trades of crypto between two parties outside of established exchanges — have low Bitcoin balances, suggesting strong demand is outstripping available supply.
