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  1. Crypto Channel
  2. Spike in Bitcoin Buyers Could Signal Accumulation Phase
Crypto Channel
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Spike in Bitcoin Buyers Could Signal Accumulation Phase

Ben HernandezAug 18, 2022
2022-08-18

Bitcoin recently touched past the $25,000 mark in a recent rally, but given the way the leading cryptocurrency has been behaving as of late, investors have to wonder whether it’s a flash rally or something more sustainable. Recent short-term buying activity could point to potential long-term support.

According to a Cointelegraph article, recent short-term buying of bitcoin could be forecasting a sustained accumulation phase. According to the article, there’s been a “recent spike in short-term Bitcoin (BTC) holders could signal a ‘final flush’ of sellers, meaning the capitulation events have played out, leaving the market ready for months of accumulation.”

“The latest ‘The Week On Chain’ report from market analysis firm Glassnode on Monday points out short-term holders (STHs) have expanded their holdings by 330,000 BTC since May’s catastrophic Terra collapse,” the report added further, noting the collapse of certain cryptocurrency coins in what’s been somewhat of a cleansing in the crypto market. “As a result, they may be the canary in the coal mine signaling the path to market recovery.”

Mirroring a Standard Economic Cycle

The accumulation phase is akin to the expansion phase in an economic cycle. Prior to an expansion is the trough, which is marked by a point of low economic growth just before recovery.

Bitcoin, and the whole cryptocurrency market, experienced its own version of a trough in the first half of 2022 with heavy sell-offs. The month of July could potentially be the start of a comeback, which happened the previous year before bitcoin skyrocketed to a new all-time high in late 2021.


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For more news, information, and strategy, visit the Crypto Channel.

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