- Bitcoin accumulation by major investors and record-low spending by mid-term holders signal a potential breakout and sustained rally.
- Analysts show key resistance near $28,500, with a breakout potentially pushing Bitcoin toward an upside target of $109,000.
- Past on-chain data shows low spending activity has preceded major rallies, reinforcing bullish sentiment in the current market.
Bitcoin’s price action suggests a potential breakout as accumulation intensifies. Major investors are stockpiling Bitcoin while mid-term holders refuse to sell. Consequently, this signals the possibility of a major rally in the coming months. Analysts Crypto Faibik and Crypto Busy highlight key resistance levels that could determine Bitcoin’s next trajectory.
Big Players Accumulating Bitcoin as Market Stabilizes
According to Crypto Faibik, Bitcoin remains in a strong accumulation phase, with big investors increasing their holdings. Current price action reflects the end of a correction phase. Additionally, a descending channel pattern has dominated Bitcoin’s movement for months. The cryptocurrency is now forming an ascending triangle within this channel.
Bitcoin is hovering around $28,500 near a crucial resistance level that, if breached, could trigger a breakout. Historical patterns indicate that similar setups in the past have led to rapid price surges. Moreover, analysts project a potential upside target of $109,000 if resistance is broken.
Mid-Term Holders Show Record-Low Selling Activity
Meanwhile, CryptoBusy shows on-chain data from Glassnode whereby Bitcoin holders in the 3m-6m range are refusing to sell. Spending activity is at its lowest level since mid-2021, indicating strong conviction among investors. Historically, such low spending activity has preceded major bullish runs.
The Glassnode data also shows that previous dips in spending occurred before Bitcoin’s explosive rallies. For example, comparable patterns foreshadowed Bitcoin’s spike to $60,000 in January 2021. Similarly, price volatility and spending increases frequently occur at the same time, supporting the bullish view.
The price of Bitcoin has been increasing since its 2022 lows of $16,000 to $20,000. By mid-2024, it had risen to a new all-time high of $100,000. The market is still rising even if there was a minor dip after that.
