Bitcoin Enters ‘Accumulation’ Phase — Implications for BTC Price

Recent data indicates that Bitcoin (BTC) may recover above $66,000 by September, though it faces notable resistance around the $61,700 mark.

Long-term Holder Accumulation Resurfaces

According to On-Chain College, Bitcoin’s long-term holder accumulation rate has reached its highest level in 15 months. This was highlighted in a recent update:

“#Bitcoin Long-Term Holders are back to accumulating at levels we haven’t seen since May 2023.”

Additionally, Glassnode reported a shift back to accumulation, with their Accumulation Trend Score (ATS) reaching a maximum value of 1.0.

“The Accumulation Trend Score indicates a market shift back to accumulation, showing significant activity over the past month.”

The ATS is a tool used to understand market behavior by analyzing various Bitcoin holder groups.

Axel Adler highlighted that about 25% of Bitcoin’s total supply was purchased between the price points of $58,000 and $73,000, thus representing a significant portion of the market capitalization.

“25% of the total available Bitcoin supply was acquired at price levels ranging from $73,000 to $58,000, which translates to approximately $300 billion of market cap.”

Can Bitcoin Hit $66,000 by September?

Even with the ongoing accumulation, Bitcoin dropped below $58,000 on August 16, experiencing a decrease of 4.2% for the week. However, some analysts believe that a rise to $66,000 is still viable based on historical patterns observed post-halving.

Technical analyst Titan of Crypto noted:

“Historically, the fourth month after the halving has consistently been bullish for Bitcoin, closing above the halving price. If this trend holds, September could see prices above $66,000.”

However, according to analyst Rekt Capital, Bitcoin must first break through resistance at approximately $61,700:

“The local high near $61,700 has been acting as resistance. BTC is currently consolidating between the late June wedge highs (~$62,000) acting as resistance and the early July wedge lows ($58,280) serving as support.”

The next critical resistance level is now projected at $59,000. Data from Coinglass suggests that a breakout could trigger the liquidation of over $700 million in short positions.

If Bitcoin’s price increases beyond $59,300, it could result in short liquidations exceeding $1 billion.

This content does not constitute investment advice. Readers are encouraged to conduct their own research before making any investment decisions.