Bitcoin Price Analysis: IS BTC Entering An Accumulation Phase?

Bitcoin (BTC) has registered a marginal decline over the past 24 hours as markets steady themselves after President Donald Trump’s first major policy move. 

Markets remained below recent highs despite experiencing a minor bump after Trump ordered creating a working group for crypto regulations. BTC is trading around $104,300, down marginally over the past 24 hours. 

Bitcoin Whales In Accumulation Phase 

Bitcoin (BTC) whales have started purchasing more of the asset after a brief lull period and some profit-taking, according to an analysis by CryptoQuant. The monthly percentage growth of BTC holdings of large investors has grown from -0.25% on January 14 to +2% on January 17. This is the highest monthly rate since December. The growth comes after Donald Trump took office, with traders expecting him to introduce pro-crypto policies and create a strategic Bitcoin reserve. Both are expected to help attract institutional interest and capital into the asset in the near term. Bitcoin whales are a key driver of BTC demand and price, and include prominent buyers like MicroStrategy. 

Selling pressure for BTC has registered a substantial decline after realizing daily profits as high as $10 billion as the price approached $100,000 in December. On the other hand, unrealized profit margins for traders are close to zero. This often acts as a price floor during bull markets. However, retail spot demand for BTC seems to be cooling off. 

“Bitcoin’s apparent demand has continued in expansion territory (green area in the chart to the left). However, the rate of expansion has declined from 279K Bitcoin in early December 2024 to 75K Bitcoin today.”

Crypto Markets Remain Steady 

The crypto market registered nominal gains on Friday but also encountered volatility as Donald Trump ordered the creation of a new working group to draft crypto regulations and explore the creation of a US cryptocurrency stockpile. BTC has encountered volatility since Trump took office but has largely settled around the $105,000 mark. However, the flagship cryptocurrency had one of the most spectacular “Trump Trades” following Trump’s election victory, gaining over 50% to break above $100,000. Trump courted the crypto industry while campaigning, promising to make the US the crypto capital of the world and make the digital asset industry crucial to US innovation. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) faced significant volatility last weekend as it fell to an intraday low of $101,591 before recovering to settle at $103,579. Buyers attempted a rally on Sunday as BTC rose to an intraday high of $106,552. However, it could not stay at this level and fell over 2% to settle at $101,434. BTC surged to a new all-time high on Monday, reaching $109,312, but quickly fell back, dropping to an intraday low of $99,516 before reclaiming $100,000 and settling at $102,5408. Buyers retained control on Tuesday as BTC registered an increase of nearly 4% and settled at $106,054.

Source: TradingView

However, it was back in the red on Wednesday, dropping 2.21% and settling at $103,713. BTC faced significant volatility on Thursday as buyers and sellers struggled to establish control. As a result, BTC reached an intraday high of $106,913, and fell to an intraday low of $101,290, before settling at $104,004. Buyers retained control on Friday as BTC rose to an intraday high of $107,038 and then settled at $104,874 after an increase of nearly 1%. The current session sees BTC marginally down, trading around $104,500.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.