- BTC’s price increased by 1% in the last 24 hours.
- On-chain metrics and derivatives market stats were bullish on BTC.
After quite some time, Bitcoin [BTC] has been comfortably trading over the $30,000 mark. A major reason behind this uptrend was investors’ accumulation over the past few months.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Despite BTC’s price decline, investors remained confident in the coin. Considering the upcoming BTC halving, are there chances of BTC’s price booming in the third quarter of this year?
Bitcoin accumulation is still on the rise
Glassnode’s 3 July tweet revealed that Bitcoin’s long-term holders had increased their accumulation. As per the tweet, BTC long-term holders have remained in a regime of gradual accumulation, amassing over 1.01 million BTC over the last 602 days.
#Bitcoin Long-Term Holders have remained in a regime of gradual accumulation, amassing a total of +1.01M BTC over the last 602 days.
This has culminated in a Long-Term Holder supply of 14.47M, just -20K BTC shy of the ATH value of 14.49M. pic.twitter.com/JHbxWIjLhn
— glassnode (@glassnode) July 3, 2023
This culminated in a long-term holder supply of 14.47 million, which was nearly 20,000 BTC shy of the ATH value of 14.49 million.
Interestingly, oinonen_t, an author and analyst at CryptoQuant, pointed out that BTC was in the pre-halving accumulation stage. As the halving is scheduled to happen next year, investors’ expectations for the coin are increasing, resulting in high accumulation.
As per the analysis, Bitcoin’s path is currently supported by multiple macro-level factors. First, the king coin has shifted from a distribution cycle to a pre-halving accumulation cycle, looking towards the spring 2024 halving.
The report also mentioned that Bitcoin was being uplifted by reflexivity – the leading cryptocurrency correlates with stocks like Coinbase, which has strengthened 138% this year.
Source: CryptoQuant
Should investors expect another Bitcoin rally?
The accumulation showed its effects on BTC’s price as it went above $31,000. As per CoinMarketCap, at the time of writing, the king of cryptos was trading at $31,011.77 with a market capitalization of more than $602 billion.
A look at the coin’s on-chain metrics suggested that the possibility of a further uptrend could not be ruled out as the bulls seem to be dominant in the market.
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For example, CryptoQuant revealed that BTC’s exchange reserve was decreasing. A downtick in the metric meant that the coin was not under selling pressure.
The derivatives market also looked bullish on BTC, as its funding rate was high. BTC’s active addresses and number of transactions were also rising at press time.
Source: CryptoQuant
