Bitcoin recently experienced significant turbulence, with its price crashing unexpectedly against market predictions. This volatility left many investors deeply disappointed by Bitcoin’s inconsistent performance. However, buyers are preventing further declines in Bitcoin’s price. As Bitcoin consolidates just below the $60,000 level, analysts suggest that investors have started accumulating, potentially building a moment for strong breakout, supported by various on-chain metrics.
Bitcoin Shows A Strong Holding Trend
According to current on-chain data, Bitcoin’s long-term holder accumulation rate has hit a 15-month peak. Long-term holders are accumulating Bitcoin at rates not seen since May 2023. The Accumulation Trend Score (ATS) has moved back to accumulation, maxing out at a perfect 1.0, indicating massive accumulation over the last month.
Around 25% of the total available Bitcoin supply, valued at approximately $300 billion, was bought at prices ranging from $58K to $73K, suggesting a strong support around $58K.
Also read: Can Bitcoin Hold $58,000? Here’s What Traders Should Know
Recent data from Bitcoin Magazine Pro reveal a notable trend among Bitcoin holders. Around 75% of all circulating Bitcoin has not moved in over six months. This robust HODLing behavior shows the confidence among holders in Bitcoin’s long-term value, regardless of market crashes.
Older coins, held for six months or more, are becoming more dominant, showing that long-term investors are holding onto their Bitcoin, possibly expecting future price rises.
This trend of holding onto Bitcoin (HODLing) is important because it reduces the amount available for trading, which could lead to more stable prices or even price increases as demand grows. The data also highlights the difference between short-term traders and long-term investors, with the latter—often seen as ‘smart money’—likely to keep their positions during market ups and downs.
According to a notable analyst, the fourth month following a halving has historically been bullish for Bitcoin, closing above the halving price. If this pattern holds, September could see Bitcoin prices soaring above $66,000.
What’s Next For BTC Price?
Bitcoin bulls attempted to push the price beyond the moving averages and $62K, but bears resisted effectively. As a result, BTC price declined below immediate Fib levels and is currently consolidating around $58K. As of writing, Bitcoin price trades at $58,841, declining over 1% in the last 24 hours.
Bears aim to solidify their control by driving the BTC/USDT pair down to the critical support at $55K, a level likely to trigger strong buying from the bulls. A rebound from $55K could see bulls making another push above the moving averages. Success in this effort might trigger a rally toward $70,000, though bears are expected to robustly defend the range up to $74K.
As the RSI level now surges toward the midline, we might see the BTC price recovering above the EMA100 trend line. Conversely, if the price falls and closes below $55K, it could indicate the beginning of a more significant correction, potentially sending the pair downward to $49,000.