Bitcoin is at a pivotal point, with several factors pointing towards a potential bear market. However, not all indicators are bearish, and some are even suggesting a potential bottoming out of prices.
Bitcoin’s profit and loss index is hovering around its 365-day moving average, a level that has previously led to major market corrections. Additionally, Tether’s market cap growth, often seen as a key driver of bull markets, has stalled. This has led some to speculate that a bear market could be on the horizon.
Bitcoin’s price action
Despite these bearish signs, there are some glimmers of hope. Large BTC holders, often referred to as ‘whales,’ have been accumulating at the fastest rate in over a year. This could be a sign that prices are set to bottom out, as these whales may be looking to buy the dip.
Germany’s aggressive selling of seized BTC also appears to be coming to a close, which could help reduce downward pressure on prices. Furthermore, the approval of an ether ETF in the US and the continued growth of US stock indices, which bitcoin has historically correlated with, could signal continued upside in 2024.
“The profit and loss index is hovering around its 365-day moving average, a level that has previously led to major market corrections,” according to data from CryptoQuant. However, “large BTC holders have been accumulating at the fastest rate in over a year, which could be a sign that prices are set to bottom out,” the data suggests.
Bitcoin whales accumulating
In conclusion, bitcoin is at a crucial stage of this market cycle, with several factors signaling continued downside and others indicating that prices are set to bottom out. Only time will tell what the future holds for the world’s largest cryptocurrency.
The future of bitcoin
