After the breakout of the Bearish Channel, bitcoin price lost some of its volatility and started to behave in a sideways fashion around the US$ 42.7k support.
Looking at the chart (below), it is essential to note that prices are moving in a clear uptrend but with decreasing volumes. “This is a classic sign that this rising trend is about to be reversed”, points out the Transfero team.
According to the analyst team, there is usually a slowdown in the pace of price increases and then a downward movement occurs. “Thus, the break of this trend can take the price back to the level of US$ 37.5 thousand, which can be a great buying opportunity”, Transfero highlights.
Bitcoin enters a period of accumulation
Another important aspect is that the entry into bitcoin’s accumulation period is becoming increasingly evident. The chart analysis shows an increasing drop in the number of bitcoins held in custody at exchanges.
“This represents a warning that some big investors are withdrawing their BTCs from exchanges and putting them in their cold wallets”, explains the Transfero team. Another sign is that generally, in a period with this setting, miners avoid putting their assets up for sale on exchanges, thus betting on bitcoin’s long-term rise.
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