Bitcoin’s recent trading patterns have revealed a distinctive ‘U-shaped’ formation, reflecting investor behavior and price fluctuations in the market. Over the past week, trading volume between $63,000 and $68,000 reached 1.71 million bitcoins, up from 1.53 million in the previous period, indicating that buyers accumulated approximately 180,000 bitcoins during this timeframe. This activity contrasts with the purchase of 1.89 million bitcoins between $87,000 and $92,000, which contributed to the emergence of the ‘U-shaped’ price range. Within this structure, a gap between $71,000 and $80,000 suggests rapid crossing of this range during October 2024’s price surge followed by a swift decline.
The $63,000 to $68,000 price range is strengthening, signaling that some investors consider bitcoin valuable at this level, potentially providing support. Reduced selling from long-term holders increases the likelihood of this price zone being tested again. Below $63,000, significant accumulation exists only at the $16,000 level, where 391,000 bitcoins remain inactive since the last bear market low, reducing the probability of a drop back to that level. Should the $63,000 to $68,000 range break, predicting the next support level will be challenging and will depend on where buyers establish new defensive positions. This could potentially form a ‘W-shaped’ pattern alongside the current accumulation zone, marking a notable market event.
As the world’s largest cryptocurrency, Bitcoin continues to attract investor attention due to its price volatility. This unique trading pattern provides market analysts with valuable insights into future price directions and potential support levels.
Source: binance
