Bitcoin is currently navigating a challenging path, struggling to regain its footing after several days of intense selling pressure, including a precarious dip below the crucial $100,000 mark. The market appears to be exhibiting exhaustion, as bulls attempt to regain momentum while constantly grappling with key resistance zones. Sentiment among traders has turned increasingly bearish, fueling concerns that this recent move could signal the onset of a deeper correction rather than a mere temporary shakeout.
However, delving beneath the surface reveals a decidedly more optimistic picture through on-chain metrics. According to analyst Darkfost, wallets identified as Bitcoin accumulator addresses—those that systematically acquire BTC without offloading any portions—are currently adding coins at a record pace. In just the past 30 days, these wallets have amassed a staggering 375,000 BTC, marking an unprecedented high in accumulation activity.
This dichotomy between price weakness and significant accumulation activity indicates that long-term investors are perceiving the recent pullback as an opportunity rather than a cause for alarm. While short-term market sentiment remains fragile, the actions of strategic buyers instill a renewed sense of confidence in Bitcoin’s long-term prospects, suggesting that “strong hands” are positioning themselves for future growth amidst the panic-driven actions of short-term traders. The forthcoming days will likely determine whether this underlying demand can stabilize prices and catalyze a rebound.
Long-Term Accumulators Ramp Up Buying Activity
Darkfost notes that the intensity of accumulation has surged sharply, even as broader market demand appears to cool. Just within the past day, accumulator addresses added over 50,000 BTC—an extraordinary testament to their conviction amidst volatility. Furthermore, over the last two months, this group has doubled their average accumulation pace, with monthly totals skyrocketing from approximately 130,000 BTC to 262,000 BTC. Such a noticeable increase during a period marked by price weakening underscores a robust long-term demand absorbing available supply.
Accumulator addresses are defined by strict criteria, requiring that they have made at least two inbound transactions above a specified BTC threshold and have never sold a single coin. This behavior closely resembles that of long-term holders, who operate independently of short-lived sentiment trends, macroeconomic headlines, or intraday price fluctuations. Essentially, these participants are strategic players aiming to capitalize on future market cycles rather than traders reacting impulsively to temporary fears.
As market participants debate whether the recent decline marks the beginning of a more significant correction, this group remains undeterred in their accumulation efforts. Their activity aligns with rising institutional interest, notably through spot Bitcoin ETFs, which likely bolsters long-term demand. This convergence of consistent accumulation and ETF-driven structural support underscores Bitcoin’s inherent strength in the long run, even as short-term price behaviors are clouded by uncertainty and emotional sell-offs.
Additionally, recent reports indicate a retreat in retail interest, with shrimp deposits declining fivefold since early 2023.
Weekly Outlook: Bulls Must Defend Key Price Structure Amid Weakening Momentum
Examining Bitcoin’s weekly chart illustrates a marked shift in sentiment, as the price struggles to maintain levels above $110,000, having recently dipped below the significant $100,000 threshold. This abrupt pullback follows multiple failed attempts to breach higher levels, reflecting a compromised bullish momentum coupled with increased profit-taking among traders.
Despite these challenges, Bitcoin still remains above its 50-week moving average, which serves as a critical support zone. As long as the weekly candle structure consistently stays above this pivotal level, the overall uptrend remains technically intact. A definitive breakdown below this support threshold, however, could pave the way for deeper retracement levels near $95,000 and potentially $88,000—zones where buyers have previously demonstrated aggressive interest.
The heightened volume accompanying this sell-off indicates genuine liquidation rather than mere low-liquidity volatility. Nevertheless, it is worth noting that the magnitude of the volume spike remains less pronounced compared to earlier capitulation events witnessed in previous cycle resets, pointing towards this scenario potentially representing a shakeout rather than a complete trend reversal.
As momentum indicators cool and market sentiment becomes more cautious, the long-term outlook remains constructive while Bitcoin persists above critical support levels. At this juncture, BTC finds itself in a crucial domain where bulls must mount a defense of the prevailing trend structure to avert a broader corrective phase.
