Bitcoin Investors Go on Accumulation Frenzy as Prices Drop

In a show of confidence, Bitcoin investors moved a record $1.7 billion into accumulation wallets as the cryptocurrency's price dipped below $63,000 on April 16. This surge in buying during the market dip highlights the unwavering conviction among large, dedicated investors in Bitcoin's long-term potential. It suggests that the current price levels may represent a final opportunity for investors to acquire Bitcoin at "bargain prices" before a post-halving rally event.

Bitcoin Investors Surge Into Accumulation Mode as Prices Dip

In a bold display of confidence, Bitcoin investors flocked to accumulation wallets, depositing a record $1.7 billion into these addresses as the cryptocurrency's price dipped below $63,000 on April 16. This unprecedented influx of buying activity during the market downturn underscores the enduring belief in Bitcoin's long-term prospects.

Record-Breaking Accumulation Amidst Market Oscillation

According to a recent report by Cointelegraph, hardcore Bitcoin holders swiftly transferred 27,700 BTC, valued at $1.75 billion at current market rates, into accumulation addresses within a 24-hour period from April 16 to 17. This substantial influx set a new daily record for Bitcoin. The previous high of 25,500 BTC transmitted to accumulation addresses in a single day was established on March 23, coinciding with Bitcoin's price hovering around $63,500.

Accumulation Addresses: A Benchmark of Long-Term Commitment

An accumulation address is a Bitcoin wallet that has never elicited any withdrawals and holds a minimum balance of 10 BTC. To ensure accuracy, these addresses were meticulously screened to exclude wallets associated with Bitcoin miners or cryptocurrency exchanges. Additionally, they must have been active within the past seven years.

Experts Anticipate Final Opportunity for "Bargain Prices" Pre-Halving

Market analysts, including pseudonymous trader Rekt Capital, posit that the early months of 2022 may represent the last window of opportunity for investors to acquire Bitcoin at "bargain prices" before a post-halving rally materializes. Rekt Capital, with a substantial following of 453,000 on Twitter, asserted that Bitcoin's price action has mirrored patterns observed in previous halving cycles.

Pre-Halving Retrace and Anticipated Re-Accumulation Phase

Rekt Capital highlighted that the recent price dip, where BTC retreated over 14% from its all-time high of $73,600 on March 13, was consistent with a "pre-halving retrace." They projected that Bitcoin could embark on a "re-accumulation phase" following the halving event, scheduled for April 20.

"Once Bitcoin breaks out from the re-accumulation area breakout into the parabolic uptrend, historically, this phase has lasted over a year (~385 days)," Rekt Capital noted. "However, with a potential Accelerated Cycle occurring right now, this figure may get cut in half in this market cycle."