Cryptocurrency analysts observe increased accumulation among holders, anticipating a delay in reaching new price highs for several weeks. Rekt Capital, a cryptocurrency trader, suggests that while Bitcoin may linger in a lower price range for a while, the overall trajectory indicates an upward trend towards reevaluating higher ranges over time.
Rekt highlights the breaking of the daily downtrend pattern in Bitcoin’s price, as it closed on May 15th at $65,854, up 6.9% from the previous day’s close, according to CoinMarketCap data. Rekt asserts that Bitcoin has recovered from the “low range” accumulation, the lower boundary of the price range at which Bitcoin is being purchased.
Rekt mentions that surpassing the all-time high of $73,797 on March 14th “may still take a few weeks.” However, traders remain optimistic about a significant price surge if this pattern persists. “The breakout in Bitcoin’s price rally will be insane […] Remember my words,” cryptocurrency trader Mister Crypto declared in a post on May 15th.
Bitcoin’s daily downtrend was reversed on May 15. Source: Rekt Capital
According to a report by cryptocurrency analytics company CryptoQuant on May 15th, despite recovering from the lower end of the accumulation range, Bitcoin whale demand remains in an “accelerating mode” after a two-month-long downtrend.
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“The growth in Bitcoin demand appears to be stabilizing after a decelerating trend since March,” it noted. The report indicates that the growth in the balance of Bitcoin held by “permanent holders and in the total balance of large investors seems to be accelerating.”
This #Bitcoin bull flag breakout will be crazy…
Mark my words. pic.twitter.com/VXrgF8zpPc
— Mister Crypto (@misterrcrypto) May 15, 2024
However, CryptoQuant asserts that demand will need to accelerate further for this price surge to be sustainable. At the time of writing, Bitcoin is fluctuating around the opening price of $65,863.
The cryptocurrency analytics company also points out low Bitcoin balances on over-the-counter (OTC) exchanges — exchanges for direct cryptocurrency trades between two parties outside established trading platforms — signaling strong demand surpassing available supply.
