Bitcoin’s Notable Accumulation amid Price Decline: Key Factors to Expect a Surge

As the united crypto market enters a new week, Bitcoin (BTC) has recently observed a dip in its price, entering a well-defined consolidation stage. At the time of this writing, Bitcoin is trading at $27,200, having experienced a marginal loss of 0.42%. With its current performance and outlook, the leading digital currency continues to exhibit an equally bearish perspective for the week, with a loss of 0.37%. 

Bitcoin’s Current Status 

In the midst of a bearish outlook, Bitcoin has demonstrated a very noticeable accumulation level according to evidence obtained from on-chain data. Crypto analyst @Ali_Charts, sharing their views, indicated that the cryptocurrency experienced intense accumulation around the price levels of $26,360 and $27,160, respectively. 

According to the presented data, a total of 2.36 million addresses purchased 1 million BTC in this range. The accumulation is relatively recent, and we may soon start to see its impact on the price of the cryptocurrency moving forward. 

During the past period, Bitcoin also traded at a low level of $25,878, and with the broad uncertainties introduced to the market last month, it failed to surpass the resistance point above $30,000. With the effect and influence of the supply scarcity that the recent accumulation may bring, we may also see the digital currency exceed its current monthly high of $29,820. 

Bitcoin Price and Fundamental Support 

There are expectations that the price of Bitcoin will continue a more defined growth path this month based on different protocol fundamentals. 

Firstly, a sigh of relief was brought to the market with the blocking of the proposed 30% tax on Bitcoin mining in the debt ceiling bill. This situation provides significant leverage to investors who are wary of injecting cash into the cryptocurrency and the sector due to adverse legislation. 

A significant sentiment that could substantially increase the price rise for Bitcoin this month is seen as the approaching halving event. Even though this halving won’t happen until April of next year, the approaching Litecoin Halving could also trigger an early rise for Bitcoin. According to Arthur Hayes, although there are high expectations for an impressive price increase in June, the real rally is predicted to start in October of this year.