Author: Ciaran Lyons, CoinTelegraph; Compiler: Deng Tong, Golden Finance
Cryptocurrency analysts say that a large number of Bitcoin holders are accumulating more of the cryptocurrency because its price is not expected to reach new highs for several weeks.
Anonymous cryptocurrency trader Rekt Capital told Cointelegraph: "Bitcoin may spend more time hovering above the range lows, but generally speaking, Bitcoin's price trajectory will be upward over time, returning to the range highs."
Rekt pointed out that the daily downtrend - a pattern in which Bitcoin's price continues to fall every day - has now "broken", and its price closed at $65,854 on May 15, up 6.9% from the previous day's close, according to CoinMarketCap data.
Bitcoin’s daily decline reversed on May 15. Source: Rekt Capital
Rekt claims that Bitcoin has rebounded from a “range low” (the lower limit of Bitcoin’s purchase price range) to re-accumulate.
Rekt said that a breakout of the March 14 all-time high of $73,797 “may take several more weeks.”
However, traders are optimistic that prices will rise sharply if the pattern continues.
“This Bitcoin Bull Flag Breakout is Going to Be Crazy… Mark My Words,” declared anonymous cryptocurrency trader Mister Crypto in a May 15 post.
Bitcoin is currently trading at $65,863. Source: CoinMarketCap
Cryptocurrency analytics firm CryptoQuant said in a May 15 report that despite rebounding from the lows of the re-accumulation range, Bitcoin whale demand is once again in “acceleration mode” after a two-month downward trend.
“Bitcoin demand growth appears to be stabilizing after a decelerating trend since March,” it said.
The report states that “the growth of total Bitcoin balances of permanent holders and large investors appears to be in acceleration mode again.”
Bitcoin whales are in “acceleration mode” again. Source: CryptoQuant
However, CryptoQuant claims that demand needs to accelerate further to sustain price increases. As of the time of publishing, Bitcoin is hovering around its opening price of $65,863.
The crypto analytics firm also noted that low Bitcoin balances on over-the-counter (OTC) platforms — direct trades of cryptocurrency between two parties outside of established exchanges — suggest strong demand is outstripping available supply.
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