The king of cryptos loses 3% during the weekend of September 24. It is thus approaching the low of June 18. On a daily chart, it seems that we are in the accumulation phase on Bitcoin (BTC). What is translated by the formation of a symmetrical triangle in H1. Additionally, the number of addresses holding at least 10 BTC, is approaching 151,000, according to glassnode.
Bitcoin (BTC) is in the accumulation phase
On a daily chart, Bitcoin is still moving inside the $18,500 and $25,000 channel.
This is a range that has formed since June. However, it seems that the first cryptocurrency is approaching the low of this channel. Indeed, the sellers remain in control despite the support zones that stand in their way.
According to glassnode, the number of addresses that hold at least 10 BTC is increasing exponentially. Indeed, these addresses will soon reach 151,000, as the value of Bitcoin heads towards $14,000. This means that more and more people buy bitcoin thinking it is a low priced asset. This confirms the fact that we are currently in an accumulation phase on Bitcoin.
Is BTC ready to take off?
At the moment, the direction that Bitcoin will take seems a bit unclear. Let’s just note the facts that it bounced down from the $19,555 resistance level. BTC thus remains in a short-term downtrend.
But also, the $18,200 support level seems to be holding Bitcoin in an accumulation phase. However, the buyers do not have enough strength to push the price above $22,500 again.
As we write these lines, we also see a symmetrical triangle at h1. This triangle sits on the lower end of the range between $18,500 and $25,000. Would a break up of this triangle sign the end of the accumulation phase on Bitcoin? Maybe. But we must not forget the resistance levels which are also waiting for a breakout to sign the beginning of a bullrun. These are the resistances around $20,000, $22,500 and $25,000.
If the fall continues, we will expect bounces around $17,000 and $14,000. Moreover, many experts mention $17,500 and $17,000 as psychological targets.
If market sentiment improves, this crypto will first test the previously mentioned major resistances, before embarking on a bullrun. At the moment, Bitcoin (BTC) is in the accumulation phase.
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