- Addresses holding 10-100 BTC are beginning to accumulate more coins.
- Increased volatility could see Bitcoin hit $80,000 by end of Q3.
Since Bitcoin [BTC] The failure to re-touch the all-time highs hit in March led to speculation that the bull market was over, but AMBCrypto found that this was not the case.
Rather, Bitcoin appears to be gearing up for Phase 2. One thing common to bull cycles is the active participation of retail investors.
Looking back at the 2017 and 2021 cycles, Bitcoin didn’t reach its all-time highs until there were a lot of retail investors in the market.
Small investors come into their own
However, in March, institutional funds drove it to as high as $73,750. But the billions of dollars that drove BTC back then have dwindled in recent months, so the price has corrected and stabilized.
But data from the Whale and Realized Cap Index suggests that may be changing.
Source: CryptoQuant
This market cap model focuses on capital flows from smaller whales and retail investors. Recently, AMBCrypto reported that market bigwigs are taking advantage of the dip to make profits.
Now, it appears that other investors have joined in, as evidenced by the increase in balances of 10-100 BTC. In past cycles, situations like this would act as the first stage of a new upswing after Bitcoin had experienced a 20-30% correction.
Crypto Dan, on-chain analyst and author at CryptoQuant, echoed a similar sentiment. analysisHe explained:
“2024 is when retail and retail investor inflows are beginning to surge, and with the second half of the bull market only just beginning, we can see the potential for additional inflows and a significant upside for Bitcoin in the near future.”
BTC may soon hit $80,000
Still, this doesn’t mean that BTC won’t reach lower values before the next upswing kicks in. To further validate the possibility of a resumption of this rally, AMBCrypto looked into Bitcoin volatility.
At the time of writing, on-chain data shows: Two-week volatility increased to 0.02. Volatility indicates the likelihood of an upswing or downswing. A lower number means that the cryptocurrency is likely to trade within a tight range.
On the other hand, increased volatility means that prices can fluctuate significantly, but this depends on buying or selling pressure in the market.
Source: Santiment
As for Bitcoin, it is possible that the price will rise significantly in the near future, but that will depend on the consistency of retail investors in continuing to accumulate coins.
Read Bitcoin [BTC] Price forecast 2024-2025
If buying pressure increases, Bitcoin’s price could surge towards $80,000 early in the third quarter (Q3).
However, if selling pressure continues until that moment, this prediction may not come true.
