- Bitcoin, Ethereum and many more altcoins face a massive plunge, suggesting the markets are at the foothill of a major drop
- Despite the helpful events and the positive market sentiments, the markets remain unimpacted and hence the influence of Bitcoin halving remains perplexing
The crypto markets are consolidating! The majority of the tokens are facing negative price action! The prices of Bitcoin, Ethereum, and many more tokens have breached their interim support levels! What went wrong? Why did the markets witness over $40 billion in losses in just a few days?
Ever since the launch of the spot Bitcoin ETF, the inflows in the top institutions like Bitwise, ARK, etc are in the millions, while BlackRock & Fidelity are recording volumes over a billion. Despite this, the bulls are diffused at the moment, as the lack of buying pressure has enabled the bears to intensify their actions. Mainly due to the fact that short-term and mid-term traders do not appear to be confident about the impending rally. Or else, they wish to accumulate at a discounted price, which may trigger a healthy upswing in the future.
As per the data from CryptoQuant, a significant drop in the volume of these holders is recorded off-let, which may be a major reason for the latest pullback.
The bitcoin accumulation phase had reached a 7-year high with the markets approaching the end of the 2022 bear market. After marking a high of 74% of the realised cap, the levels began to plunge. Interestingly, the plunge has intensified ever since the markets rebounded in the last quarter of 2023. Therefore, it indicates that Bitcoin continues to remain in the distribution phase but is not fully distributed to retailers. Hence, a short-term correction could be fast approaching, as a long-term bull market may not be triggered until the distribution phase is fully completed.
Besides, the non-zero addresses of Bitcoin are constantly soaring, regardless of the current price action. Hence, it suggests that new traders are entering space at rocket speed but are holding for only a short time frame. However, the recent price action suggests the Bitcoin price is on the verge of dropping below $40,000 in the short term, beyond which a major trend reversal may be triggered.