Bitcoin has been on a rough ride lately, but could a major rally be on the horizon? Analysts point to three crucial conditions that must be met for Bitcoin (BTC) to break out of its current downtrend. Let’s get started!
📉 Current Market Overview
Bitcoin, trading at $56,657, has seen a daily decline of 1.01% and a 30-day decline of 2.80%, struggling to gain momentum since hitting an all-time high of $73,737 in March 2024. While retail traders are showing optimism, it is not enough to spark a rally yet.
🔍 3 main factors for rising prices
1. 💼 Low number of small Bitcoin holders: Wallets holding less than 1 Bitcoin dominate the market, hindering a potential rally. These small Bitcoin holders often sell recklessly, increasing market volatility.
2. 📊 Growth of intermediate investors: Investors who own 1-100 BTC need to accumulate more. This indicates that experienced investors are returning to the market, which could push Bitcoin in an upward direction.
3. 🐋 Whale Accumulation: Large Bitcoin holders who own more than 100 BTC are the key to the massive bullish momentum. Whales need to start accumulating Bitcoin aggressively to start a real rally.
🔥 Current Bitcoin Holders Details
• Small Bitcoin holders control 88.24% of the Bitcoin supply, owning 17.44 million Bitcoin.
• Investors own 10.5%, while whales own only 1.26%.
• Whale accumulation has slowed significantly, indicating lower demand and confidence in the near future.
📈 Expectations
If small retail holders continue to dominate, Bitcoin could see a drop to $54,587. But if average investors and whales step in to accumulate more Bitcoin, we could see a huge rise in Bitcoin!
