The Federal Reserve’s decision to raise interest rates in the face of rising inflation was not well received by the crypto market, but the failure of BTC to surpass $25,000 has emerged as macroeconomic concerns continue to take center stage. Primary cryptocurrency Bitcoin (BTC) is currently expressing negative sentiment after a bullish indicator flashed. The flagship coin is currently struggling once again to maintain the value above $20,000
Bitcoin price is down almost 68.9% from its all-time high of $69,044. In a bear market, the major cryptocurrency should ideally retrace between 75 and 82% from its previous highs. For example, after the 2017 bull run, BTC fell to an all-time low of around $3,800 in early 2020 and then rebounded to an all-time high in November 2021.
On-chain data from Glassnode indicates that whales (high-volume investors) have started stocking BTC as the bear market comes to a conclusion. When the bitcoin price experienced its best-performing month in 2022, July, the total volume of transfers from exchanges reached 137,390.
Will the accumulation increase?
Although recent market volatility has put a halt to whale buying, accumulations are projected to increase by the end of the year. In other words, when investors are sure that the market will return, they remove their assets from the exchanges. This could encourage bitcoin price to gain momentum and break free from the $1,000 range channel on its way to $28,000.
Addresses holding 1,000 BTC or more also stabilized at 2,134 after the recession. At the time of writing, the metric still stands at 2,145 addresses in this group, indicating that recovery is in progress. Support at $20,800 could act as a springboard for a bullish breakout, which would turn bitcoin price north.