Bitcoin Could Be Ready to Surge: What Happens Next?
Recent consolidation has seen Bitcoin remain stable over the past two weeks, ranging between $117,261 and $120,000. The lack of movement in the price has prevented Bitcoin from hitting a new all-time high (ATH). But according to indications in investor behavior, the coming month may bring about a big change that could rewrite Bitcoin’s August price history.
Bitcoin‘s sell-side risk ratio is currently at a 6-month high of 0.24. It is, however, nearer the low-value realization barrier of 0.1 and well below the neutral threshold of 0.4. Considering that investor behavior points to a halt in significant sell-offs, this implies that the market is consolidating.
Whales Are Back: Bitcoin Accumulation Score Nears 1.0
Low sell-side risk has historically been an indicator of market bottoms or accumulation stages, when investors bide their time for an advantageous opportunity to push prices higher. This accumulation is significant because it raises the possibility that a change in the price of Bitcoin is imminent.
For the last two weeks, Bitcoin’s accumulation trend score has been close to 1.0, suggesting that whales and other large investors are actively building up their holdings. Since these whales have a big impact on the cryptocurrency’s price, this tendency is crucial. Strong bullish momentum among institutional and high-net-worth investors is indicated by an accumulation score that is closer to 1. This might give Bitcoin a strong foundation on which to overcome the resistance levels it has previously encountered.
August Blues or Bullish Breakout? Bitcoin Battles Historical Downtrend
The price of Bitcoin is currently ranging between $117,261 and $120,000, with a lingering price of $119,074. Even while this range has been stable, if market sentiment continues to be strong, there is a good chance that it may break through $120,000.
On the other hand, with a median monthly return of -8.3%, August has historically been a bad month for Bitcoin. However, Bitcoin might defy its historical tendency this year due to the current accumulation trend and the low sell-side risk. Bitcoin is likely to push beyond $122,000 and proceed toward the ATH if it can secure $120,000 as support. However, if investors change their position because of unanticipated market conditions, there is still a chance that the market will turn bearish.
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