Bitcoin Preps for Halving-Fueled Rally as Accumulation Ramps Up

Bitcoin's substantial accumulation day, with large holders acquiring a significant amount of BTC, may signal the end of its pre-halving retrace. This accumulation, valued at $3.4 billion, represents a notable portion of the available supply and could positively impact market caps. As the halving approaches, analysts believe that this accumulation trend may continue, potentially leading to a shallow and shorter retrace period than previous market cycles.

Bitcoin Eyes Halving Rally as Accumulation Surges

Bitcoin's pre-halving correction may have already run its course, with a surge in accumulation by large investors providing a timely boost to sentiment.

On March 25, analytics firm Santiment flagged a significant accumulation event over the weekend, catching traders off guard. "Sharks" and "whales," wallets holding between 10 and 10,000 bitcoins, added an impressive 51,959 BTC to their coffers on March 24, worth approximately $3.4 billion at the time. This represents a substantial 0.263% of the current circulating supply acquired in a single day.

As the halving, scheduled for April 19, draws near, Santiment highlights the potential for these wallets to continue building their positions, driving further positive momentum in the broader cryptocurrency market.

Pre-halving corrections have historically been a concern for analysts, who anticipated a more significant retracement. However, Bitcoin's relatively modest decline of around 17% from its March 14 peak of $73,738 has defied expectations.

Technical analyst "Rekt Capital" noted that if the current retraction proves to be the end, Bitcoin will have closely mirrored the pre-halving correction of 2020. "Bitcoin pulled back -18% in this cycle whereas BTC retraced just over -19% in 2020," he observed.

Rekt Capital had previously predicted a shallower and shorter pre-halving correction than in previous cycles. This hypothesis appears to be holding true so far.

Cryptocurrency research firm Kaiko, analyzing market volatility and last week's dip on March 25, found that selling pressure intensified following the close of U.S. trading hours. Kaiko also noted the fragmented nature of liquidity in the cryptocurrency market, not only across exchanges but also across trading pairs.

At the time of writing, Bitcoin was trading up 5.2% at $70,252, recovering strongly from an intraday low of $61,494 on March 20. The asset briefly touched $71,000 in late trading on March 25, signaling a resurgence of bullish sentiment.

As the halving approaches, the convergence of large-scale accumulation, technical indicators, and improving market conditions suggests that Bitcoin may be poised for a sustained rally in the coming weeks.