Bitcoin’s Pre-Halving Retrace: Is It Over After Major Accumulation?

Key Takeaways:

• Accumulation Signals Bullish Sentiment: Significant accumulation of Bitcoin by ‘sharks’ and ‘whales,’ totaling 51,959 BTC in one day, suggests strong bullish sentiment among key stakeholders.
• Pre-Halving Retrace Potentially Concluded: Recent accumulation activity, coupled with Bitcoin price reclaiming the $71,000 price level, indicates that the pre-halving retrace may have ended.
• Modest Decline in Bitcoin’s Price: Despite concerns, Bitcoin experienced a modest 17% decline from its all-time high, suggesting a less severe pre-halving retrace compared to historical trends.
• Analyst’s Predictions Hold: Technical analyst ‘Rekt Capital’ predicted a relatively shallow and shorter pre-halving retrace, which aligns with the observed market behavior.
• Market Resilience Amid Volatility: Despite market volatility and intensified selling after the US market close, Bitcoin exhibited resilience, trading up 5.2% at $70,252 at the time of writing, indicating strong underlying support.

Read More: Bitcoin Price Prediction 2024

Bitcoin’s potential pre-halving retrace might have concluded with substantial accumulation observed recently, leading to Bitcoin reclaiming the $71,000 price level.

🐳📈 #Bitcoin has just caught traders off guard (as usual) with a huge rebound ascension to $70K. Why? Key #Bitcoin stakeholders had one of their single largest accumulation days in years.

🔼51,959 collective #Bitcoin were accumulated by wallets that hold between 10-10K $BTC on… pic.twitter.com/vT4fRUVYs7

— Santiment (@santimentfeed) March 25, 2024

Blockchain analytics firm Santiment revealed that on March 24, wallets categorized as ‘sharks’ and ‘whales,’ holding between 10 and 10,000 coins, accumulated a significant amount of Bitcoin, totaling 51,959 BTC, valued at around $3.4 billion at that time. This accumulation represented 0.263% of the entire currently available supply in just one day, signaling a strong bullish sentiment among key stakeholders.

BTC/USD | Source: TradingView

As the Bitcoin halving approaches in approximately three weeks, crypto analysts anticipate continued growth in these wallets, potentially positively impacting the overall crypto market caps.

Despite concerns about a substantial pre-halving retrace, Bitcoin price only experienced a modest decline of around 17% from its March 14 all-time high of $73,738, dropping to $61,494 on March 20, according to CoinGecko data. Technical analyst ‘Rekt Capital’ highlighted that if this marks the end of the pre-halving retrace, Bitcoin’s performance closely mirrors the pre-halving retrace observed in 2020.

Rekt Capital had previously suggested that the pre-halving retrace might be relatively shallow and shorter compared to historical trends.

In response to market volatility and the recent dip, crypto research firm Kaiko reported that selling intensified after the U.S. market close, indicating fragmented liquidity across exchanges and trading pairs.

Despite these fluctuations, Bitcoin price showed resilience, trading up 5.2% at $70,252 at the time of writing, reaching an intraday high of $71,000 on March 25.

The recent accumulation and Bitcoin’s ability to maintain its price levels suggest a positive outlook for the crypto, potentially indicating the end of the pre-halving retrace and paving the way for further bullish momentum in the lead-up to the halving event.

Source: CoinTelegraph