Bitcoin has entered a period of total accumulation, with investors preparing to go all-in.
Bitcoin has seen a little uptick, but analysts predict more significant increases for the most renowned cryptocurrency.
According to on-chain statistics, Bitcoin is firmly in the accumulation phase, with bulls rubbing their hands in glee. Indicators such as the market value to realised value (MVRV) and the long-term moving average crossings indicate a potential asset class rally.
The Puell Multiple, an indicator that measures the quantity of BTC sold by miners relative to the asset’s fair value, is the primary indication of undervaluation. The Puell Multiple went below 0.5 in the middle of the month, essentially entering the “green zone.” This pattern has often preceded multiple BTC rallies in the past, including the beginning of the most recent bull run in 2020.
According to Blockware Intelligence, approaching the green zone is an ideal time to average. At the same time, CryptoQuant’s Julio Moreno verified that the indicator had “entered a zone consistent with previous market bottoms.”
Earlier reports indicated that miners sold their Bitcoins significantly to cover production expenses. As prices fell below $18,000, it looked that miners bore the brunt of the market collapse.
As prices fell, whales seized the chance to increase their holdings. Nevertheless, the number of companies holding less than 1 BTC has risen continuously. According to statistics from Glassnode, the figure has reached all-time highs, with the majority of the buildup occurring in the last 90 days.
Surviving a Tesla stock sale
Tesla’s announcement that it has sold up to 75 percent of its Bitcoin threw Bitcoin fans into a cold sweat. The automaker said in its results report that the transaction was intended to clear its books at the end of Q2.
Bitcoin achieved a 7-day high of $24,196 and experienced double-digit weekly gains despite the $900 million liquidation. BTC’s market capitalization is $468 billion, a long cry from its all-time high of almost $1 trillion, but its market domination is 41.6 percent.
Alongside Bitcoin, several cryptocurrencies also witnessed substantial rises. As whale activity increased, ETH, SOL, XRP, and ADA were among the most profitable cryptocurrencies.
Also Read: Dogecoin (DOGE) Transaction Volume Increases Despite Market Consolidation
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