Key Points
- Bitcoin’s price fell by 8.57% in 24 hours, reflecting a continued distribution phase among large entities.
- Until the market transitions to accumulation, Bitcoin’s price is expected to drop further.
Bitcoin [BTC] experienced a significant drop of 8.57% in the last 24 hours, after briefly recovering to $95k. This sharp decline reflects the cryptocurrency’s increased volatility.
Bitcoin’s Distribution Phase
According to data from Glassnode, Bitcoin’s accumulation trend score has been below 0.5 for 58 consecutive days. This indicates an extended period of net distribution, suggesting that Bitcoin is still within a distribution phase.
Over the past year, the distribution phase has lasted an average of 65 days, while accumulation cycles have lasted 57 days. Currently, Bitcoin’s Trend Score is at 0.9, suggesting that large entities are still in a net distribution regime, with no confirmed transition to accumulation.
Market Behavior and Implications
This trend among large entities has been further validated by a positive change in whale and exchange balance, suggesting an intention to sell. As a result, the market might take longer to transition to a sustained accumulation phase.
The ongoing distribution phase has resulted in significant selling pressure, which has strongly affected Bitcoin’s price action. In the last 24 hours, Bitcoin’s price dropped to $83,908.
If this trend continues, Bitcoin’s price could potentially drop to $82,500. However, once the macroeconomic uncertainties affecting the market subside, organic demand could return, potentially leading to a price recovery.