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HomeBitcoinBitcoin Faces Inflection Point: Accumulation Phase Sparks Price Speculation

Bitcoin Faces Inflection Point: Accumulation Phase Sparks Price Speculation

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  • CryptoQuant analysis predicts possible Bitcoin stabilization or decline, with on-chain indicators still showing bullish signals.
  • Leveraged trading risks highlighted amid volatile market conditions, with potential for forced position liquidations increasing.

Bitcoin has sustained trading levels above $100,000 following the inauguration of President Donald Trump, indicating a resilient market despite potential for a consolidation phase. Analysts project that Bitcoin might experience either a stabilization or a slight decline in the coming months, which marks a critical period for the cryptocurrency.

Since President Trump’s selection for office in November 2024, the crypto market has seen all-time highs, showcasing its capacity to endure through various economic climates and maintaining robust market momentum. 

Continuing with ETHNews reports, this was analyzed in a recent post by CryptoQuant CEO Ki Young Ju on X, who suggests that while the bull cycle for Bitcoin is not conclusively over, there could be some sideways movement.

He points out that, although other on-chain indicators are bullish, investors engaging in leveraged positions should exercise caution.

bitcoin-net-taker-volume-hourly-binance
Source: CryptoQuant

The risks associated with leveraged trading are particularly pronounced in volatile markets, where rapid price movements can result in the forced closure of positions by exchanges due to insufficient margin, thus amplifying losses.

Bitcoin-CryptoQuant-PL-Index
Source: CryptoQuant

In his analysis, Ju highlighted the MACD of the PnL Index, currently at an inflection point, indicating that the market could go in any direction.

The atmosphere following President Trump’s recent inauguration also influenced market movements. According to CryptoQuant contributor Darkfost, Bitcoin faced selling pressure immediately after the ceremony, attributed to the absence of any mention of crypto initiatives during President Trump’s speech, leading to short-lived investor pessimism. 

However, this sentiment shifted quickly, with Binance’s net taker volume turning positive, indicating a resurgence in buying activity.

BTCUSDT_2025-01-22_15-29-14
Source: Tradingview

While the short-term movement suggests a stable trading range, Bitcoin’s Relative Strength Index (RSI) being above 70 indicates substantial buying pressure, reinforcing a bullish outlook for the near future.

Moreover, Bitcoin’s exchange netflow shows a continued trend of net withdrawals, hinting at a strong accumulation phase among investors. This pattern could potentially lead to a supply shock, reducing Bitcoin’s availability on exchanges and possibly driving up its price further if demand persists.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
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