- Bitcoin fell victim to multiple corrections of late, pushing its value down under $94k.
- Buying pressure was rising, but other datasets suggested a continued price drop.
Bitcoin [BTC] has once again entered a crucial zone, which has the potential to propel the coin’s price further ahead in the coming days. In fact, a recent analysis predicted that the king coin might touch $130k in Q1 2025.
Bitcoin starts to consolidate
The king coin’s price has been witnessing multiple corrections over the past few weeks after breaching the $100k mark. To be precise, BTC’s value dipped by nearly 3% in the past seven days.
This latest decline has pushed BTC’s price under $94k again. At the time of writing, the coin was trading at $93.134 with a market capitalization of over $1.84 trillion.
AMBCrypto also reported earlier that the possibility of a price decline is high as a key metric turned bearish.
In the meantime, Michael Saylor’s parody X (formerly Twitter) account posted that BTC has once again entered an accumulation phase. Inasmuch, a few weeks of consolidation could set the stage for a massive breakout.
The tweet also predicted a target of $130k by the first quarter of 2025.
Historically, major price upticks have followed such accumulation phases. Therefore, AMBCrypto checked accumulation trends to find out whether investors were considering buying the king coin.
As per CryptoQuant’s data, BTC’s net deposits on exchanges were low compared to the last seven days’ average—a clear sign of rising buying pressure. Miners were also following a similar trend.
Notably, Bitcoin’s Miners’ Position Index (MPI) revealed that this cohort was selling fewer holdings, compared to its one-year average.
What’s in store in the near term?
Since BTC has been consolidating and entering an accumulation phase, AMBCrypto then assessed other datasets to find out what to expect in the short-term.
Things going forward might get tough for investors as several metrics were flashing red signals.
For instance, Bitcoin’s NULP suggested that investors are in a belief phase where they are currently in a state of high unrealized profits.
Moreover, the total number of coins transferred has decreased by -37.70% compared to the previous day, which can have a negative impact on the token’s price.
Source: CryptoQuant
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The technical indicator MACD also displayed a bearish upper hand in the market, suggesting a continued price drop.
Nonetheless, Bitcoin’s price was about to touch the lower limit of the Bollinger Bands, which often results in a bullish trend reversal.
Source: TradingView
