It has been three months since Bitcoin’s all-time high, however, analysts forecasted that the next wave will take time to occur and the BTC price may stay at $30,000 for a while.
Last July 17, the analytics service Ecoinmetrics tweeted that this year’s drop from record highs is the second-longest in the bull market history of Bitcoin.
Investors are now impatient since it has been 95 days since the BTC/USD hit $64,500. Despite strong fundamentals, its spot price action will likely not leave $30,000 behind.
Based on the analysis, there were 197 days between two all-time highs last 2013.
Therefore, Bitcoin can still go sideways for months before increasing again to beat its record.
Way back, the BTC/USD pair reached a floor price of 69% below its previous record highs.
This means that the current market setup could allow levels under $30,000 and still stay within its historical norms.
Ecoinometrics said that in terms of price trajectory, this looks very similar to what happened in 2013.
However, it added that if the strategy made that year will be repeated this year then BTC will remain stuck around $30,000 for the meantime.
In a report, the recent on-chain behavior drove this price as more than just a psychological trading zone for the world’s largest cryptocurrency.
In addition to several metrics which support its importance, investors have started to accumulate coins once again. This includes those who recently sold at the current levels.
Over the weekend, a statistician highlighted that retail investors and different classes of whales are balancing each other out between buys and sells.
He added that it’s the retail that drives Bitcoin into bull markets and when they stop buying, it will be a bear market warning, however, they haven’t yet stopped buying.
BTC Accumulation Reset
According to research, BTC can only rise again if the $30,000 accumulation reset continues.
At the beginning of the latest bull run in October 2020, small investors are the ones who accumulate coins.
This started when Bitcoin passed its previous record high of $20,000 and continued up to its new peak of $64,500.
However, at $20,000, larger investors began selling even though there were no sufficient quantities to finish the bull run.
On the other hand, whales added selling pressure when BTC/USD hit $30,000 for the first time which resulted in tipping points at May’s highs, according to analysts.
Now that $30,000 came back, cold feet are nowhere to be seen as both small and big investors are buying again.
Analysts said that if their research interpretation is right then the correction needed in this situation is a reset.
Additionally, if the trend of accumulation continues, the price direction of Bitcoin will rise.