Does Bitcoin's Big Accumulation Phase Show Us Where the Price is Heading?
Bitcoin continued its daily equilibrium pattern but had a strong day yesterday going from $9,110 to $9,625. Currently, bitcoin is in a consolidation phase from yesterday's move, but buyers are feeling comfortable.
The daily 12-EMA indicator serves as support as buyers want to set a higher low compared to $8,642. This tight price range is now in favor of buyers as volume increases.
In the short term, this is in favor of buyers, but the long-term outlook looks good as well. The weekly chart formed the so-called bull flag and the monthly chart has been favorable for buyers for the last 3 months.
Accumulation before the big move?
In a tweet on May 29, a well-known analyst in the crypto world, Credible Crypto, stated that bitcoin has been experiencing a massive accumulation period for the last 896 days, but its journey to $100,000 will soon begin.
A weekly chart posted by "Credible Crypto" on his Twitter Link that Bitcoin is also forming an equilibrium pattern here with a clear high and eventual low followed by a lower high and higher low. However, the equilibrium pattern is neither up nor down, it just shows that bitcoin has a lot of potential to make a big move when either of the levels is broken.
For example, if Bitcoin were to break below the lower level, we should expect a huge continuation of the downtrend afterward, but we don't know if Bitcoin will actually break this level or not. Bitcoin is currently closer to a lower high than to an upper low, but we can easily see another lower high followed by an upper low.
The range is still wide and anything can happen, but there are some basic reasons why bitcoin is not very likely to be broken. The Grayscale Trust Fund is buying bitcoin at an accelerating pace this year, with institutional interest in bitcoin growing.
Interest in Bitcoin is rising to new highs almost every other day this month, and the recovery of $3,700 after the March 12 massive crash shows the strength of this cryptocurrency.
What do you think? Does bitcoin have upside potential now or is there still a deep correction ahead?