Will a Massive Bitcoin Accumulation Trend be Enough to Propel It Further?
Bitcoin is currently in the throes of a boring consolidation phase within the upper-$11,000 region. This comes as the cryptocurrency struggles to surmount the resistance that sits at $12,000.
It is important to note that the growth its price has seen in recent times appears to be far more organic than those seen in previous years – suggesting that it is establishing a strong base for a fresh macro uptrend.
One metric of this organic growth can be seen while looking towards exchange outflows, which have been rising rapidly in recent months.
This indicates that investors are taking a long-term approach to their Bitcoin investments and may also indicate that there has been some “serious accumulation” as of late.
The confluence robust fundamentals coupled with a bullish technical structure signals that the next parabolic bull run may be far larger than those seen in previous years.
Bitcoin Builds a Strong Base for a Movement Higher as Accumulation Trend Persists
At the time of writing, Bitcoin is trading down marginally at its current price of $11,750.
The benchmark cryptocurrency has been caught within a consolidation phase throughout the past several days while struggling to break above the heavy resistance that sits at $12,000.
This hasn’t stopped investors from continuing to increase their exposure to BTC, as data shows that a multi-month accumulation trend is still going incredibly strong.
Speaking about this trend, one analyst explained that this suggests people are preparing for the next bull run.
“It looks like there’s been some serious accumulation going on since March. People prepping for the bull run maybe.”
He referenced the below chart, showing that exchange outflows have been on the rise since March.
Image Courtesy of Byzantine General. Data via CryptoQuant.
Because investors are pulling BTC from exchanges, it does indicate that they are taking long-term positions in the cryptocurrency.
BTC’s Technical Outlook Grows Bright After Posting “Most Important Breakout” Ever
Bitcoin’s recent uptrend has allowed it to break and close above a descending trendline that has been formed and respected since 2017.
This breakout is undeniably bullish, and one analyst is even going so far as to call it the “most important breakout” in the cryptocurrency’s history.
“Most important breakout in BTC history,” he said while pointing to the chart seen below.
Image Courtesy of CryptoBirb. Chart via TradingView.
Despite not being able to break above $12,000 just yet, it does appear that another leg higher is imminent in the days and weeks ahead.
Unlike in 2017, Bitcoin has now built an incredibly strong fundamental foundation that could propel it significantly further in the months and years ahead.
Featured image from Unsplash. Charts from TradingView.