April 19, 2024
Has Bitcoin's Pre-Halving Dip Ended? 52K BTC Accumulated on Sunday Alone
Bitcoin Halving

Has Bitcoin’s Pre-Halving Dip Ended? 52K BTC Accumulated on Sunday Alone

Bitcoin prices surged back to reclaim $71,000 in late trading on March 25, indicating a potential end to its pre-halving retracement, following a substantial accumulation of 51,959 BTC on Sunday.

Significant Accumulation Day

Blockchain analytics firm Santiment reported on March 25 that Bitcoin experienced a surprising rebound, catching traders off guard, as key stakeholders engaged in a massive accumulation day over the weekend. Wallets classified as ‘sharks’ and ‘whales,’ holding between 10 and 10,000 coins, accumulated 51,959 BTC, valued at approximately $3.4 billion at the time, representing 0.263% of the entire currently available supply in just one day.

Source: Santiment

Impact on Market Caps

With the Bitcoin halving looming approximately three weeks away on or around April 19, Santiment suggested that the ongoing accumulation trend among these wallets could have a positive impact on crypto-wide market caps.

Comparative Analysis

Crypto analysts initially expressed concerns about a substantial pre-halving retrace, expecting historical patterns to repeat. However, Bitcoin only experienced a modest 17% decline from its March 14 all-time high of $73,738, dipping to $61,494 on March 20, according to CoinGecko. Technical analyst ‘Rekt Capital’ noted that if this marks the end of the pre-halving retrace, Bitcoin’s performance would nearly match its 2020 pre-halving retracement, with a pullback of -18% in this cycle compared to just over -19% in 2020.

Market Volatility and Liquidity

Addressing market volatility and the dip experienced last week, crypto research firm Kaiko revealed that selling intensified following the U.S. market close. The firm’s analysis of buy and sell orders highlighted fragmented liquidity across exchanges and trading pairs.

Current Status

As of the reporting, Bitcoin was trading up 5.2% on the day at $70,252, after reaching an intraday high of $71,000 in late trading on March 25.

Bitcoin’s recent accumulation surge and price rebound suggest a potential end to its pre-halving retracement, with analysts observing similarities to previous market cycles and emphasizing the impact of key stakeholders on market dynamics.

Image by Sketchepedia on Freepik

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