Recent analysis suggests that Bitcoin (BTC) might currently be in a reaccumulation phase, a concept familiar to those who study the Wyckoff pattern. This pattern helps identify various stages in market cycles.
**Is $BTC in Reaccumulation? Wyckoff and On-Chain Analysis**
“If the reaccumulation phase continues, we could expect a breakout upwards (markup phase) as the next step in the Wyckoff cycle.” – By @onchain_edge
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— CryptoQuant.com (@cryptoquant_com) July 2, 2024
**Bitcoin Price Range Indicates Reaccumulation Phase in the Market**
CryptoQuant and other market analysts suggest that Bitcoin is currently in a consolidation phase, trading within a range of approximately $57,178 to $71,587. Such sideways movement is typical during reaccumulation phases, indicating potential for upward movement.
One promising sign is the MVRV Ratio, currently at 1.97. This ratio indicates that the market value exceeds the realized price, suggesting Bitcoin is overvalued. This scenario often corresponds to a period where investors hold significant unrealized gains, characteristic of a distribution or early markdown phase before accumulation.
Analysis of Exchange Inflow & Outflow trends also shows a decline in volumes, particularly in exchange reserves. This indicates that Bitcoin is being withdrawn from exchanges, a common occurrence during accumulation phases, suggesting growing optimism among holders who are not inclined to sell.
**SOPR Ratio Suggests Long-Term Holders Favoring Accumulation**
The aSOPR, which measures the ratio between profit-taking and losses, is slightly above 1. This indicates a phase where no single group is dominating the market, typical of reaccumulation. However, the SOPR Ratio remains low, indicating long-term investors are not realizing their gains, a positive sign for potential bottoming patterns typical of accumulation or reaccumulation phases.
In conclusion, if Bitcoin continues this pattern, market participants and analysts expect a bullish breakout, initiating a markup phase in the Wyckoff cycle, potentially followed by a bullish trend and an increase in asset price. Investors and analysts are closely monitoring these aspects to predict Bitcoin’s next moves in the market cycle.
**Tags: BTC**