Ali, a crypto analyst, reported this massive influx of Bitcoin into accumulation addresses, which are typically associated with investors who hold their assets for long-term value appreciation, rather than engaging in frequent trading.
The timing of this move is particularly noteworthy. It comes at a time when the market is facing a downturn, with prices dropping across the board. Bitcoin’s price fell to $58,414 at the start of the week, the lowest since May 3.
This “drop” in value prompted short-term selling as traders and investors sought to reduce their losses. However, in this instance, a contrarian approach was taken, with a significant investment made into Bitcoin, signaling a belief that the market might rebound.
According to the chart presented by Ali, on June 27, over 20,200 BTC, worth $1.23 billion were funneled into accumulation addresses. This type of behavior is commonly interpreted as a bullish signal, and the market’s reaction in the aftermath is being carefully watched.
Bitcoin has lost roughly 10% of its value in June. It temporarily touched $71,000 at the beginning of June but has since declined steadily. Since March, the flagship cryptocurrency has been trapped in the $60,000 to $70,000 level.
At the time of writing, Bitcoin was down 0.26% to $60,916 and has been trading in a tight range since recovering from Monday’s lows of $58,414.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
