Bitcoin

Momentum

April

when

<p>In April and the initial weeks of May, <a href="https://coingape.com/price/bitcoin" rel="noopener noreferrer nofollow">Bitcoin price</a> entered a phase of stagnation, holding steady without significant movement. Despite this apparent lull, investor enthusiasm remained unabated, as many continued to accumulate and hold Bitcoin in anticipation of a major upswing. Analysts are now suggesting the possibility of a forthcoming 300-day bullish period, bolstering the optimistic sentiment surrounding the cryptocurrency. The current market dynamics, momentum indicators, and accumulation trends all point towards a critical juncture for Bitcoin. As experts delve into the nuances of these factors, the pressing question emerges: will Bitcoin surge to unprecedented heights, or is another slump on the horizon?</p>
<h2 id="bitcoin-price-momentum-indicators-a-crucial-turning-point">Bitcoin Price Momentum Indicators: A Crucial Turning Point</h2>
<p><a rel="noopener noreferrer nofollow" href="https://x.com/AxelAdlerJr/status/1793180324173599223" target="_blank">Axel Adler</a>, another prominent analyst, recently shared an on-chain analysis, focusing on Bitcoin’s momentum. The price gradient oscillator, a key indicator of market cap growth compared to realized cap, was highlighted in his analysis. This oscillator is pivotal in understanding Bitcoin’s market dynamics.</p>
<p>During the 2021 rally, the oscillator’s lower highs indicated a weakening bull trend as Bitcoin approached its peak. In contrast, in 2024, the oscillator has formed a lower high at 2.96. For a sustained bullish momentum, a move past 3 is necessary to avoid repeating the 2021 pattern of fading bullishness. Currently, the oscillator reading stands at 1.38, suggesting that bulls need to maintain pressure to prevent a slump.</p>
<h2 id="bitcoin-price-inventory-trends-signs-of-accumulation">Bitcoin Price Inventory Trends: Signs of Accumulation</h2>
<p><a rel="noopener noreferrer nofollow" href="https://x.com/woonomic/status/1793207316281782637" target="_blank">Willy Woo</a>, Crypto analyst , noted significant accumulation trends in Bitcoin over the past two months. Despite the lack of a clear higher timeframe trend, the demand for spot BTC has been substantial. This trend led to panic among retail holders but indicated strong underlying demand.</p>
<p>Woo’s examination indicates that Bitcoin will likely exceed its previous record high against the US Dollar soon. The declining Bitcoin inventory on exchanges, as shown by data from Woonomic, reflects the same sentiment. When Bitcoin is taken off exchanges, it suggests a trend towards holding for the long term and a decrease in selling pressure.</p>
<h2 id="whale-activity-a-double-edged-sword">Whale Activity: A Double-Edged Sword</h2>
<p>The exchange <a href="https://coingape.com/bitcoin-news-whales-scoop-636m-in-single-day-whats-next-for-btc-price/" rel="noopener noreferrer nofollow">whale</a> ratio, which tracks the activity of large Bitcoin holders, saw an uptick in April and May. Typically, during a bullish trend, whale activity decreases, as they are less likely to sell. However, the recent increase in whale activity has raised some concerns among investors.<br> This rising whale activity could suggest caution, as it usually picks up when prices start to slide lower. Yet, it is not definitive proof of a market top. The continued outflow of Bitcoin from exchanges, as highlighted by Willy Woo, counters this concern and supports the argument for a prolonged bull run.</p>
<h3 id="strong-bitcoin-price-action-strong"><strong>Bitcoin Price Action</strong></h3>
<p>At the time of writing, Bitcoin is trading at&nbsp;<span class="sc-f70bb44c-0 jxpCgO base-text">$69,305.26</span> , having dropped by 0.73%, over the past day. BTC has also seen a decline in Market cap and 24-hour trading volume to reach $1.365trillion and $33 billion respectively.</p>
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 <p style="text-align: center;"><img decoding="async" class="aligncenter size-full wp-image-198395" src="https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-170057.png" alt="Bitcoin Price Action" width="2565" height="1259" srcset="https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-170057.png 2565w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-170057-300x147.png 300w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-170057-1224x601.png 1224w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-170057-768x377.png 768w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-170057-1536x754.png 1536w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-170057-2048x1005.png 2048w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-170057-150x74.png 150w" sizes="(max-width: 2565px) 100vw, 2565px"></p>
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<h2 id="strong-conclusion-strong"><strong>Conclusion</strong></h2>
<p>The present state of Bitcoin price is characterized by careful positivity. Although it is important to take note of the recent decrease in prices and uptick in large volume trades, the general indicators and patterns of accumulation suggest a positive market outlook. If bulls continue the momentum and push the oscillator above 3, Bitcoin could potentially reach new record highs. In the ever-changing realm of cryptocurrencies, it is crucial to stay informed and alert in order to navigate the market successfully.</p>
<p>The post <a href="https://coingape.com/blog/will-bitcoin-price-soar-to-new-heights-or-face-another-slump/" rel="noopener noreferrer nofollow">Will Bitcoin Price Soar to New Heights or Face Another Slump?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.</p>

Will Bitcoin Price Soar to New Heights or Face Another Slump?

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