Following the recent U.S presidential elections, there was a notable shift in sentiment in the cryptocurrency market, leading to Bitcoin [BTC] reaching an all-time high. Although there has been a correction since then, the price of BTC remains close to its peak.
Investors are displaying a sense of trust in Bitcoin, suggesting a possible upward trajectory in the days ahead.
Increasing Bitcoin Accumulation Activity
Not long ago, Bitcoin achieved a new record high of $76,849 on November 7. While it has seen a minor drop post this peak, its current trading value stands at $76,422.29 with a market capitalization exceeding $1.5 trillion.
Despite the slight dip, there is a prevailing sense of confidence in Bitcoin. A renowned crypto analyst named Ali recently shared insights on Twitter revealing a notable trend. More than 57,800 BTC have been accumulated in addresses over the past few days, amounting to over $4 billion in value.
This accumulation trend implies that entities holding substantial amounts of BTC anticipate a price surge. Such a scenario could potentially lead Bitcoin to retest its all-time high. To verify the market sentiment, additional data sets were examined.
Analysis of CryptoQuant’s data indicates a reduction in Bitcoin’s exchange reserves. This decline suggests a growing interest among investors in acquiring Bitcoin. The Coinbase premium also reflects positive sentiment, particularly strong among U.S investors.
Furthermore, the Futures market signals optimism with a favorable funding rate, indicating a prevalence of long position traders willing to pay short traders.
Are All Factors Aligned for an ATH Retest?
While several metrics point towards a bullish outlook for Bitcoin, there are some elements raising caution. For instance, BTC’s aSORP indicator has turned negative, indicating increased selling by investors to secure profits, potentially signaling a market peak amid a bullish phase.
Bitcoin’s binary CDD also displays a bearish trend, reflecting a higher movement among long-term holders compared to usual, potentially leading to a negative market impact if these movements are intended for selling.
Exploring Bitcoin’s liquidation heatmap, it was assessed for potential large-scale liquidation risks that could trigger a price correction before retesting its all-time high.
Analysis indicates that Bitcoin might witness a surge in liquidations post crossing the $77,000 milestone. Therefore, sustained accumulation efforts and bullish sentiment could pave the way for Bitcoin to reach a new all-time high.