After the recent decline in the last three months, Bitcoin has entered into an accumulation phase once again. According to data from Glassnode, the early signs of accumulation by BTC indicate that investors are starting to hold back at lower levels. This situation increases the hopes of market participants for future price movements, while the coming weeks will determine whether Bitcoin will enter a recovery or a deeper correction phase. Bitcoin (BTC) continues to trade below $85,000 and with the bearish momentum losing strength, struggling to overcome significant resistance levels and failing to sustain low demand areas. This situation leads market participants to worry that the current correction may deepen further. Macro-economic uncertainty and market volatility have been further intensified, especially with the turbulence in both the cryptocurrency markets and traditional financial markets due to the erratic policy decisions of US President Donald Trump. Global trade wars and tightening monetary conditions continue to exert pressure on risky assets, preventing Bitcoin from showing a meaningful recovery. However, some key indicators in market behavior are signaling a possible shift. Data provided by Glassnode indicates early signs of Bitcoin accumulation following a three-month distribution. This could be an indication that investors are starting to hold back at lower levels. Historically, the transition from distribution to accumulation has typically occurred in the market before a recovery period. This suggests that investors are re-entering the market and positioning themselves for a possible recovery process. The next few weeks will be a critical period for the future of Bitcoin. Bitcoin’s ability to maintain its current support and attract new demand will determine whether the markets expect a recovery or a deeper correction.

BITCOIN IN CORRECTION MODE: ACCUMULATION TRENDS SIGNAL POSSIBLE TURNAROUND

After losing the $100,000 level, Bitcoin entered a correction phase. When BTC struggled to rise above $90,000, the downward trend was fully confirmed. Since hitting the all-time high (ATH) of $109,000 seen in January, Bitcoin has lost over 29%, and this decline is expected to continue due to the adverse impact of global macroeconomic conditions. Trade wars between the US and major economic powers like Europe, China, and Canada continue to exert pressure on financial markets, creating uncertainty and increasing risk aversion. As geopolitical uncertainties increase, both cryptocurrency markets and traditional financial markets continue to show volatility as they struggle to find stability. However, not all indicators point to a downward trend. Crypto analyst Ali Martinez noted that the tides are turning for Bitcoin. Following a three-month distribution, Glassnode’s Accumulation Trend Scores model shows early signs of Bitcoin accumulation. This indicates that large investors are re-entering the market and positioning themselves before a possible recovery. This accumulation period could be a critical turning point in determining whether Bitcoin will experience a significant recovery above key supply levels or enter a longer consolidation period. The next few weeks will determine the short-term price movement direction of Bitcoin.

CAN $80,000 BE RETESTED?

Bitcoin is currently trading around $83,000 and while struggling to surpass $85,000, it continues to hold support at the $82,000 level. This range-bound price movement creates uncertainty among investors, with bulls trying to push towards higher levels while bears exert pressure for a decline. For Bitcoin to be controlled by bulls, it needs to surpass a significant resistance level of $89,000 in line with the 4-hour 200 Moving Average (MA). Breaking above $90,000 would confirm a potential recovery trend and open the doors to a new upward movement towards $95,000. However, if Bitcoin fails to surpass this level, the risk of a deeper correction will increase. Particularly if the $82,000 level is lost, Bitcoin may enter a downward spiral and retest $80,000 or lower levels. With market sensitivity still fragile, the next major move of Bitcoin will determine the short-term direction of price movement.