Key Insights:
- Bitcoin sees sharp swings as macroeconomic factors and liquidity trends shape market movements.
- Whale accumulation spikes, signaling increased investor activity despite recent market corrections.
- Analysts track liquidity expansion and technical trends, hinting at potential bullish momentum ahead.
Bitcoin’s price has experienced intense fluctuations in recent days, driven by major geopolitical and macroeconomic factors. Earlier this month, the crypto surged to nearly $95,000 following U.S. President Donald Trump’s announcement that his administration was working on establishing a strategic Bitcoin reserve.
Bitcoin Price Fluctuating Momentum
However, the rally quickly lost momentum, leading to a sharp price correction. By March 4, Bitcoin’s valuation had dropped below $83,000, as concerns over the escalating global trade war weighed on financial markets.
Despite this setback, bulls attempted to regain control, pushing BTC price back to $92,300 on March 6. However, the momentum was short-lived, and by March 11, Bitcoin had declined below $77,000, marking its lowest level since November 2024. Over the past 24 hours, the asset has shown signs of recovery, briefly reaching $84,000 before stabilizing at around $81,778 at the time of writing.
Whale Accumulation Reaches Unprecedented Levels
Amid Bitcoin price woes, recent on-chain data highlights an increase in Bitcoin inflows to accumulation addresses, suggesting heightened buying activity. A chart shared by analyst Vivek illustrates how these inflows, which represent BTC deposits into long-term holding addresses, have surged to historic levels.
Notably, a significant spike in accumulation was observed late last year, indicating that large investors, commonly referred to as whales, have been aggressively acquiring Bitcoin.
Key indicators in the analysis include the BTC price 30-day simple moving average (SMA), which tracks the average price over a month, and the inflows 30-day SMA, which smooths out daily accumulation activity.
The data reveals that in recent weeks, daily BTC inflows into accumulation addresses have exceeded 36,000 BTC on certain days. Historically, similar surges in accumulation have coincided with Bitcoin price increases, indicating a potential bullish trend.
Liquidity Trends Point Toward Imminent Bull Run
Other market analysts have also been closely monitoring global liquidity trends, as they have historically influenced BTC price cycles. Analyst AO’s latest research presents a correlation between Bitcoin’s price movements and the Global Liquidity Index, which measures overall market liquidity.
The research splits into two displays: one shows BTC price history while the other shows global liquidity growth. History proves that Bitcoin experiences major price growth during periods of global liquidity across markets. Liquidity has increased across market sectors again this year, showing the same pattern as earlier bull markets which produced strong price growth. The analyst highlights that Bitcoin could reach $450,000 if past trends repeat.
Further Bitcoin Price Analysis
Elsewhere, according to Rekt Capital, Bitcoin’s price movement on the daily chart shows positive indicators that could lead to an increase. The data indicates that Bitcoin has been in a downtrend, characterized by lower highs and lower lows.
However, price action indicate that the market might be moving toward resurgence. On March 11 Bitcoin slipped below $80,000 for only a short period before returning to $83,168. A downward-sloping trendline remains intact, but a break above it could signal the start of a price recovery.
RSI data points to improving market conditions with no overlapping price action but rising trend lines. As Bitcoin fell to its lower lows RSI recorded new higher lows proving that the bearish force weakened. The setup shows that Bitcoin may soon return to an upward movement.
Another chart from analyst Mister Crypto compares Bitcoin’s current price cycle to its 2021 trajectory. Recent trends across the market indicate Bitcoin will probably duplicate its impressive performance from late 2020 and early 2021. The trend shows likely exponential Bitcoin growth with estimates reaching between $400,000 and $900,000. To reach this levels, Bitcoin must break out of its recent area of variability around $80,000.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
