Published on November 15th, 2024 | by Jameelah "Just Jay" Wilkerson

Considerable BTC accumulation suggests price rally will continue

Bitcoin started 2024 strong, with a price rally that took it to new all-time highs. This is particularly noteworthy as the previous two years were not the best for the crypto world. 2022 brought significant losses, with prices plummeting by almost 70%, and while 2023 was expected to help the market go forward, it didn’t live up to its promise and the prices stagnated instead. Binance data shows that the current rally, which occurred ahead of the next halving, something uncommon for the crypto environment, has changed things significantly for cryptocurrencies.

Volatility is incredibly steep at the moment, and market participants must have a good strategy in order to minimize the possibility of losses. With the next halving looming on the horizon, you must be ready to consolidate your portfolio and know where to buy Bitcoin.

Accumulation

During a period of accumulation, investors predict that the prices are low ahead of a new rally, making it the best time to start buying. The simplest and most straightforward trading strategy is to buy low and sell high in order to drive profit. As the prices climb and it becomes unsustainable for many to buy, the consolidation phase begins, and investors later decide if they want to see some of their assets or if they’ll hold on to them and watch them amass growth over time. All eyes are now on whale investors, individual or institutional traders who complete large-scale investments and deal with large amounts of capital.

This means that they have the chance to influence trends and dynamics in the crypto environment, and can even have a momentary effect on prices if the transactions are large enough. Recent data shows that the amount of wallets holding anywhere between 1,000 and 10,000 Bitcoin has gone between 23% to 25.17% between January and March 2024. Those who own between 10K and 100K coins went from 11.68% to 12.42% between the 2nd and the 21st of March. The accumulation done by whales has a dramatic effect on bitcoin deposits and their movements and presence on exchanges.

Research suggests that deposit transactions began decreasing on March 5th, as the Bitcoin price went over the $69,000 mark. The trend was still ongoing as of March 19th, suggesting that there was a general lack of interest in selling. This could be interpreted as a bullish sign and part of the current market movements. There were also reports of hefty transactions moving Bitcoin from exchanges to self-custody wallets.

Halving

The halving is an essential event for the entire crypto market, not just Bitcoin. Owing to its position as the most prominent crypto by market capitalization, any movements or changes that digital gold goes through reverberate through the rest of the trading environment as well. Therefore, when the price climbs, the altcoins go up as well, and when BTC is affected by a downtrend, the cryptocurrencies go on a downswing as well.

In 2024, prices went up because of the ETF approval of January 10th. Increased market engagement, especially from institutional investors who were unwilling to deal with BTC before, is considered by analysts to be largely responsible for this. But with the halving still ahead, it’s quite probable that Bitcoin’s value will continue to rise significantly. The brunt of the price growth is expected sometime between five and twelve months in the aftermath of the halving. At least, this was the case for the previous halvings, but some believe that building predictions based on historical data won’t work this time around because the price has already moved in ways unlike any before. The emergence and appeal of exchange-traded funds for the Bitcoin community are also noteworthy and will probably change things as well.

Many miners are expected to become obsolete, unless they switch to more modern apparatus in order to keep up, or relocate their procedures to an area that has cheaper electricity costs. The diminishing supply resulting from the excitement surrounding the exchange-traded funds is also leaving its mark on the BTC blockchain, with the implications being even more serious in the aftermath. Nonetheless, investors expect a new growth cycle to progress largely undeterred in the aftermath of the next halving.

Strategies

So, how can the investors prepare for this? Given the fluctuations in the crypto space, it can be tough to come up with a cohesive plan. On the one hand, you need a strategy so you can protect your assets from the possibility of erratic trading, but you might be worried that you’re missing out on some stellar opportunities by doing this. The most important thing is to remain aware of the market movements in order to be able to progress.

The decisions made by long-term holders will be crucial in the upcoming months. Whether they choose to hold on to their assets or sell them will have a significant impact on the market sentiment overall, as well as on liquidity. Investors are focused on the next price level, with analysts following in their footsteps as well. This became particularly important after the rallies took the prices back above the $70K level in the aftermath of the corrections. When the prices dropped to the $64,000 level, whales added over 80,000 coins.

This appears to have been the momentum behind the growth that followed. The level around $64K was also consolidated so that it can act as a strong support level from which Bitcoin will continue to grow.

Price predictions

During the last weeks of 2023, investors believed that prices would see their first real growth after the halving. Price levels between $80,000 and $100,000 were estimated to become a reality around the beginning of 2025. But many now believe that these levels will be achieved much faster, perhaps even in the upcoming months. As for 2025, analysts hypothesize that Bitcoin might reach the $300,000 mark. It’s not yet clear how the market will behave at this level.

The current year is set to be very important for Bitcoin’s overall evolution and development. Investors must be aware of the changes and their impact on portfolios. It is the only way to stay safe and continue recording gains.

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