Bit has been in a sideways trend for the past 2 weeks. Nevertheless, major cryptocurrencies have experienced the largest accumulation in recent memory.
This accumulation is valued at $23 billion and has helped maintain Bit's price above the important $96,000 level.
Bit investors are optimistic
The Cost Basis Distribution (CBD) provides insight into the current sentiment in the Bit market. The data shows that $99,559 is the largest accumulation zone, with 125,000 Bit being bought just below $100,000.
Meanwhile, there has also been significant accumulation in the range of $96,000 to $98,000, with an additional 120,000 BTC added over the past 2 weeks. This suggests that the $96,000 to $100,000 range has now solidified as a key support zone for Bit, helping to maintain the price above $96,000.
Bit is holding support in this zone, which is a signal of strong investor confidence despite market volatility. With the largest accumulation zone clustering around this $96,000 to $100,000 range, these price levels have now taken on greater significance.
Looking at the broader market momentum, realized profits show that investors are still actively participating in Bit. Despite the accumulation, the spike in realized profits suggests traders are realizing gains during the growth period. This underscores the ongoing volatility in the market and indicates that profit-taking behavior could hinder Bit's ability to maintain additional upward momentum.
While this spike in realized profits demonstrates healthy market activity, it also serves as a reminder of the challenges Bit faces in sustaining its upward momentum. Investors realizing profits can contribute to short-term price corrections, but this behavior is a normal part of the market cycle.
BTC Price Prediction: Sideways Movement Possible in the Mid-$90,000s
Bit's price is currently hovering around the $96,000 support level after failing to break above $100,000. The large accumulation in the $96,000 to $100,000 range has formed a solid foundation that could prevent a significant downfall. If Bit can maintain this range, it may attempt another push towards $100,000.
However, Bit may face resistance at $100,000 and could struggle to establish support above this level. If the price fails to break above this crucial threshold, the cryptocurrency could become trapped in a sideways range between $96,000 and $100,000.
If Bit can recover and sustain above $100,000, it may be able to resume its upward trend. This could trigger a move towards the next major resistance level and bring Bit closer to its all-time high. Continued accumulation at these price levels would suggest that investor confidence remains strong, which could drive future price appreciation.
