Journalist
Posted:
- Bitcoin fell victim to multiple corrections recently, causing its value to fall below $94,000.
- Buying pressure increased, but other data sets suggested a continued price decline.
Bitcoin [BTC] has once again entered a crucial zone, which has the potential to further push the price of the coin higher in the coming days. A recent analysis even predicted that the king coin could reach $130,000 in the first quarter of 2025.
Bitcoin is starting to consolidate
The price of the king coin has undergone several corrections in recent weeks after crossing the $100,000 mark. To be precise, the value of BTC has fallen by almost 3% in the past seven days.
This latest drop has pushed the price of BTC below $94,000 once again. At the time of writing, the coin was trading at $93,134 with a market cap of over $1.84 trillion.
AMBCrypto too reported rather that the possibility of a price drop is high as a key metric turned bearish.
In the meantime, Michael parodies Saylor’s X account (formerly Twitter). posted that BTC has entered an accumulation phase again. To that extent, a few weeks of consolidation could set the stage for a massive breakout.
The tweet also predicted a target of $130,000 in the first quarter of 2025.
Historically, large price increases followed such accumulation phases. Therefore, AMBCrypto checked accumulation trends to find out whether investors were considering buying the king coin.
According to CryptoQuant’s factsNet deposits of BTC on the exchanges were low compared to the average of the past seven days – a clear sign of increasing buying pressure. Miners also followed a similar trend.
Notably, Bitcoin’s Miners’ Position Index (MPI) showed that this cohort sold fewer assets, compared to the annual average.
What can we expect in the near future?
Since BTC is consolidating and entering an accumulation phase, AMBCrypto then assessed other data sets to figure out what to expect in the near term.
Things could get tough for investors in the future as several indicators gave red signals.
For example, Bitcoin’s NULP suggested that investors are in a belief phase where they are currently in a state of high unrealized gains.
Furthermore, the total number of coins transferred has decreased by -37.70% from the day before, which could have a negative impact on the price of the token.
Source: CryptoQuant
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The technical indicator MACD also showed a bearish upper hand on the market, indicating a continued price decline.
Nevertheless, Bitcoin’s price was about to reach the lower limit of the Bollinger Bands, which often results in a bullish trend reversal.
Source: TradingView