The recent dip below $20K has raised speculations of a repeat of the accumulation campaign historically observed at the $19K point.
Bitcoin investors have shown an affinity to the $19,000 price point, as recent data suggests that 968,810 addresses previously purchased 474,260 Bitcoin (BTC) tokens at an average price of $19,100. This massive accumulation has set up strong support for BTC at the price point.
The purchased tokens are valued at an estimated $9.05 billion, as highlighted today by blockchain intelligence resource IntoTheBlock.
#BTC buyers appear to have a sweet spot just below $20k, with a whopping 474k BTC (~$9.5B) purchased at $19k. This concentrated buying zone indicates that buyers historically step up when prices hover near the $20k psychological barrier. Will we see a repeat of this pattern?… https://t.co/st7qMg5VVE pic.twitter.com/g3somwAD0F
— IntoTheBlock (@intotheblock) March 10, 2023
The platform pointed out that this buying trend indicates a concentration of buying activity near the $20,000 psychological barrier, suggesting that buyers are confident in purchasing Bitcoin when the price hovers near this price point.
This comes on the heels of Bitcoin’s crash below $20,000 for the first time since it reclaimed the price point on Jan. 14. According to IntoTheBlock, the question now is whether this pattern will repeat itself as the bears threaten to batter the asset to the lowest points of the $19K territory.
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It bears mentioning that Bitcoin’s social activity has seen a massive uptick of late amid the market-wide bloodbath. According to Santiment, discussions on the firstborn crypto have significantly increased recently, with the asset’s social dominance hitting a high last seen in July 2022.
😓 With #Bitcoin hitting $20.6k & #altcoins plummeting even faster, crowds are focusing back on $BTC. This is the highest ratio of BTC vs alt discussions since July, 2022. High Bitcoin discourse is a fear sign, which historically can turn around markets. https://t.co/6QjTNeCFm7 pic.twitter.com/MAx3ZXhrtp
— Santiment (@santimentfeed) March 9, 2023
Data from Messari also suggests a surge in active addresses, as they increased to 929K in the past 24 hours, with up to 706K addresses accumulating more tokens. Moreover, crypto analyst Seth recently asserted that Bitcoin is entering the accumulation phase again.
BTC’s Outlook and the Fall Below $20K
Meanwhile, analysts have ascribed the dominant turbulence to several market conditions. According to a CryptoQuant Quicktake from Wednesday, the previous week’s price drop was triggered by selloffs from short-term holders and increased selling pressure on miners.
Nonetheless, the analysis beckons for a “cautiously optimistic” outlook for BTC for several reasons. One such reason is a decrease in whale spending, as deep-pocketed addresses currently spend below 150K BTC daily instead of 500K BTC in previous correction phases.
The analysis also highlighted an increase in whale accumulation. This accumulation trend has resulted in a massive cumulative holding for BTC whales, as their total balance reaches highs last seen in November 2022.
BTC is currently down 6.81% in the past 24 hours, trading for $20,050 as of press time. Verified CryptoQuant author Maartun also ascribed the recent price slump to negative news surrounding Silicon Valley Bank and Silvergate.
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