Recent on-chain data has shown that Bitcoin might be entering into two separate crucial phases in the current market cycle that could help to determine the next trajectory of the crypto asset’s price over the coming weeks.

Bitcoin’s Accumulation And Distribution Phases Identified

Bitcoin’s capital flow on the blockchain is revealing regions of Accumulation and Distribution, providing insight into investors’ behavior as reported by Alphractal, an advanced investment data platform, in a recent post on the X (formerly Twitter) platform.

It is worth noting that during accumulation phases whales and long-term investors tend to grow their Bitcoin holdings, which are characterized by high activity and an indication of confidence in the asset’s price growth in the future. Meanwhile, during distribution phases, these holders sell off a percentage of their holdings, mostly leading to market corrections and heightened market volatility.

The platform developed the prognosis after examining Bitcoin’s On-chain CapFlow Sentiment Index metric. This key metric assesses the realized capitalization of BTC by using a combination of momentum and stochastic indicators, along with a number of on-chain oscillators.

According to the platform, the indicator has been reliable in pinpointing the areas in the network, where the momentum of coin flow starts to wane and lose steam, reflecting distribution by smart hands. Alphractal claims this particular development also occurs during accumulation phases, which corresponds with local b

Go to Source to See Full Article
Author: Godspower Owie