Key Points
- Bitcoin (BTC) has been trading between $58,000 and $60,000 this week, despite positive headlines and investments from large companies.
- Analysts suggest that Bitcoin is in the accumulation phase and could stage a comeback soon.
Bitcoin’s price has shown little movement this week, remaining within a narrow price range of $58,000 to $60,000. This is despite the fact that the biggest cryptocurrency in the market has received positive news coverage.
Market Movements and Investments
In contrast to Bitcoin, the Dow Jones index has been on a rising trend for three days straight, sitting just 2.5% below its record high. The Nasdaq 100 and S&P 500 indices have also rebounded, while the US dollar index has fallen.
Despite Bitcoin’s stagnant price, several large American companies have disclosed their Bitcoin ETF investments. Goldman Sachs, for instance, has invested $418 million in Bitcoin ETFs. Other firms such as Charles Schwab, Nomura, Citigroup, and Barclays have also invested in these funds.
Regulatory Clarity and Accumulation
The cryptocurrency industry is also gaining regulatory clarity. Senate Majority Leader Charles Schumer has expressed his commitment to pass a crypto-related bill by the end of the year. However, it remains uncertain whether the divided Congress will pass anything before the November election.
Marathon Digital, a leading Bitcoin mining company, has continued to accumulate Bitcoin. It purchased coins worth over $250 million this week, bringing its total holdings to 25,000.
There are indications that the Federal Reserve might start reducing interest rates now that the unemployment rate has increased to 4.3% and inflation is decreasing.
Potential Comeback
Crypto analyst Miles Deutscher noted that Bitcoin seems to be entering the apathy/time capitulation phase. He observed a drop in crypto-related YouTube views and trading volume.
Data shows that DEX volume in chains like Ethereum (ETH), Solana (SOL), and Arbitrum (ARB) has decreased by over 33% in the last 7 days. Deutscher believes that this could be the ideal time to accumulate.
Currently, Bitcoin is hovering at the 200-day Exponential Moving Average, and the accumulation/distribution indicator is trending upwards, suggesting ongoing accumulation.
Most notably, BTC has formed a bullish flag chart pattern, indicating a potential price bounce if bulls can push it above the resistance point at $62,513.
