Bitcoin [BTC] spent most of December on consolidation. After the daily close at $91,277 on December 2, the asset continued to trade within that range.
This performance reflects a clear increase in accumulation, and this time Bitcoin could push back towards the $100,000 zone if buying pressure continues.
Bitcoin accumulators return
BTC accumulators have reappeared on the market since early December. CryptoQuant’s analysis shows that this group of investors raised 78,000 BTC between December 1 and 10.
The indicator used, Demand from Accumulator Addresses, shows that their balance grew from 237,000 BTC to 315,000 BTC within this period. In dollar terms, that’s $7.2 billion spent in less than two weeks.
Source: CryptoQuant
Accumulator addresses are defined using several criteria: no outflows, a minimum amount of BTC purchased per transaction, at least two purchase events, and at least one occurrence of activity in the last seven years, among others.
Accumulation on this scale generally signals a broader sense of calm in the market and growing investor confidence in a recovery.
This improved sentiment follows Fed Chairman Jerome Powell’s announcement at the latest FOMC briefing of a rate cut, a dovish stance that is bullish for Bitcoin and other risk assets.
Buyers are getting on board
A similar bullish trend is emerging in the derivatives market as Bitcoin perpetual investors retreat.
Bitcoin’s Spot Taker Cumulative Volume Delta (90-day time frame) shows that taker buyers have returned since September.
The dominance of taker-buy implies a stronger buying volume in the market.
This is important because the CVD data shows that sellers dominated the market between September and now, with only short periods of equilibrium.
Source: CryptoQuant
The bullish bias in derivatives is becoming increasingly visible as the Funding Rate, which tracks whether investors are bullish or bearish, signals a similar shift.
At the time of writing, CoinGlass’ Funding Rate data showed a reading of 0.0067% in positive territory, confirming that buyers have dominated, albeit modestly, over the past day.
What’s next for Bitcoin
AMBCrypto reviewed Bitcoin’s daily liquidation heatmap to assess current bullish or bearish risk.
The heatmap shows minimal upside risk compared to downside risk, based on the positioning of liquidity clusters, areas in green and yellow that reflect unexecuted orders.
There are fewer liquidity pockets above the current price than below it.
In practice, this means that Bitcoin will face fewer obstacles if bullish momentum continues, compared to the resistance it may face if the price moves downward.
Source: CoinGlass
Given current sentiment, accumulators and buyers are likely to encounter less resistance from the press-time price range of $92,464 to $97,089 on the chart.
However, declines towards $89,000 and $88,000 would face stronger liquidity clusters, which could act as demand zones that would push the price higher if sentiment turns bullish.
For now, the confluence of returning accumulators, renewed buying pressure in the derivatives market, and the bullish FOMC outlook indicates strengthening momentum for Bitcoin.
Final thoughts
- Bitcoin investors collected 78,000 BTC worth $7.2 billion in December alone as momentum returns.
- Derivatives market data shows bulls are making a comeback after a month-long sell-off that started in September.