Bitcoin’s price is constantly fluctuating, and experts are trying to understand what’s driving these changes. Recent data suggests that Bitcoin is going through two distinct phases: accumulation and distribution.
Understanding the Phases
Accumulation is when big investors, known as “whales,” are buying up Bitcoin. This usually happens when they believe the price will go up in the future. It’s like collecting valuable coins!
Distribution
is the opposite. Whales are selling off some of their Bitcoin, which can cause the price to drop. Think of it like selling off some of your collection.
Tracking the Flow
A company called Alphractal has developed a special tool to track Bitcoin’s flow. This tool helps them identify when whales are buying or selling.
Alphractal believes that Bitcoin has already gone through a distribution phase earlier this year. However, they think there’s a chance we could see another accumulation phase, similar to what happened in 2017.
Bitcoin’s Recent Momentum
Bitcoin has been showing some positive signs lately. It recently surged from around $59,000 to nearly $70,000 in a week.
While it has dipped a bit since then, it’s still holding strong. This suggests that bulls (investors who believe the price will go up) are still in the game.
What’s Next for Bitcoin?
If bulls regain control, Bitcoin could see a price recovery and even reach $70,000 again. But if whales continue to sell, the price could drop.
It’s important to keep an eye on the data and see what happens next. The future of Bitcoin is still uncertain!
