Bitcoin Accumulation and Volatility Trends in 2023
Bitcoin (BTC) has been recovering from the dip experienced on Monday and has reclaimed its position above $30,000. BTC rose towards $30,400, but resistance at this level proved too strong for the coin to break through despite multiple attempts. This morning, BTC has fallen to $30,099 on Binance and €27,435 on Bitvavo, putting the coin’s price up 1.1% for the day. Trading volume has risen over the past 24 hours, increasing by 12%. The total market capitalization is currently $582 billion, with the dominance rate at 45.9%. At the same time, the Fear and Greed Index is indicating a score of 63, indicating Greed in the market.
1. Bitcoin Market Currently in Patience Phase
Despite the significant rise last week, Bitcoin’s volatility is again decreasing. According to Glassnode data reported by Onchain Edge, the current market is similar to the market in the early years of 2016 and 2019. However, these were periods of low volatility, during which investors primarily demonstrated patience.
2. Bitcoin Accumulation by Whales and Small Investors
Though volatility is decreasing, investors continue to accumulate BTC. According to Glassnode, balances for bitcoin shrimps, investors holding less than 1 BTC, continue to grow steadily. This trend has been gaining speed since the LUNA crash in May 2022. Additionally, whales, investors holding 100 to 1,000 BTC, have been accumulating BTC again. Recently, these investors bought 20,007 BTC, worth about $600 million, over a couple of days, according to Santiment.
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3. Will Bitcoin Make Another Attempt at $31,000?
Bitcoin was recently rejected at $31,000. Material Indicators shows that offers in the range between $28,000 and $29,000 are gradually shifting to the current trading range. If these offers are sufficiently replenished, Bitcoin may make another attempt to break $31,000.
4. Bitcoin NFTs Continue to Succeed
Bitcoin NFTs are continuing to gain popularity, with Reflexivity Research reporting that Bitcoin Ordinals have generated transaction fees of 170 BTC or over $5 million.
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In conclusion, BTC is currently in a patience phase, with whales and small investors continuing to accumulate the coin. Though the coin’s volatility is decreasing, it may make another attempt at breaking $31,000. In addition, Bitcoin NFTs are gaining greater traction in the market, with BTC generating over $5 million in transaction fees. To gain more insights into the cryptocurrency market and receive help with trading, you can join the Crypto Insiders Premium community.