Cryptocurrency market is preparing for a rise, says Bitfinex

Bitfinex analysts indicated that the correction phase of the cryptocurrency market appears to have come to an end. Now, investors are entering a reaccumulation phase, which usually precedes new price increases.

As outlined in the Bitfinex Alpha report, the consistent buying of Bitcoin (BTC) and Ether (ETH) by investors suggests a significant change in market behavior.

After reaching an all-time high of US$73,700 in March, Bitcoin suffered a price correction, falling to US$57,500. During this period, long-term holders took the opportunity to take profits, increasing the supply of BTC on the market and triggering a consolidation phase that lasted several weeks from April onwards.

End of cryptocurrency consolidation?

Bitcoin exchange-traded funds (ETFs) have witnessed large daily outflows, with an average of $148 million being withdrawn. This phase was interpreted by analysts as a microcapitulation.

However, this outgoing trend soon reversed. As BTC sellers became exhausted, demand began to rise again.

Over the past two weeks, US spot Bitcoin ETFs have seen average daily net inflows of $136 million. While Grayscale’s GBTC faced significant outflows, other funds showed a 15-day streak of inflows.

According to the report, the reaccumulation phase is also evident in the increase in new accumulation addresses and the average transaction size of Bitcoin and Ethereum. Bitfinex highlighted that despite price stability and modest asset growth compared to previous months, there has been a notable increase in the number of new accumulation addresses in the last month.

Analysts point out that this trend indicates an optimistic investor sentiment, even with the stability of crypto assets.

Another indication of this change is the decrease in Bitcoin exchange reserves, which tracks the amount of BTC held in exchange wallets. The drop in this metric, which began in February and intensified recently, is seen as a positive sign by analysts. This is because it reduces the available supply of BTC on the market. This suggests that investors are expecting a further rise in prices.

This combination of factors – an increase in purchases, the creation of new accumulation addresses and a reduction in foreign exchange reserves – reflects a market in transition from consolidation to reaccumulation, setting the stage for possible price increases in the near future, according to the report.