Key Highlights

• There’s a noticeable trend with both retail and institutional investors accumulating Bitcoin, hinting that many believe it’s currently undervalued.

• Upcoming macroeconomic events in the US could help clarify some anxieties that are currently exerting downward pressure on crypto prices.

Throughout the week, Bitcoin (BTC) traders were engaged in a tug-of-war, with sellers capping each price increase at around $112,000, while buyers rushed in to defend declines in the $107,000 to $108,000 range.

Some analysts are a bit worried about Bitcoin’s struggle to stay above $112,000 and the consistent low points. But, on a positive note, the pattern of increasingly higher lows and lower highs on both the 4-hour and daily charts might indicate a potential turnaround.

Traders focused on technical analysis often suggest that after dramatic market movements—like the selloff on October 10 where Bitcoin’s open interest dropped by half—we could see “compression before expansion.” That’s when the volatility lessens before prices stabilize.

On the positive side, various developments indicate that Bitcoin might eventually bounce back to the $120,000 mark. For instance, the Spot Bitcoin ETF saw an influx of $477 million as BTC dipped from $107,500 to $114,000.

Coupled with these inflows, data shows that buyers on platforms like Binance and Coinbase are making purchases ranging from $101,500 to this week’s high of $114,000.

Moreover, Glassnode’s Bitcoin Accumulation Trend Score currently stands at 0.924. The on-chain data service suggests that scores nearing 1 imply a significant accumulation by larger entities across the network, while scores close to 0 would indicate dispersal or lack of accumulation.

Many analysts seem to concur that Bitcoin’s range-bound phase might conclude early next week, potentially leading to a recovery in altcoins as upcoming US economic events unfold.

This content is for informational purposes and shouldn’t be perceived as legal or investment advice. The views expressed are solely those of the author and don’t necessarily reflect the perspectives of any other entity.