Bitcoin in accumulation phase, reclaims $60K support line

Bitcoin posted a swift increase above $62K before declining to $60.8K, capping a broad market rally that undid sharp losses from the previous week. Positive sentiment in the stock market and predictions that Bitcoin will repeat previous market cycles contributed to the rally, as did liquidated short positions before falling during Friday’s London trading session.

Bitcoin has been forming an ascending flag pattern on technical charts since March of this year, according to the most recent post by CryptoQuant, indicating a positive bullish signal for BTC. This well-known pattern typically signals notable upward shifts, implying that Bitcoin may see a breakout in the upcoming months.

Bitcoin’s increased demand was also affirmed by CryptoQuant’s Onchain NetFlow metric, which showed a noticeable increase in buying pressure and supported this technical analysis. The technical pattern’s alignment with on-chain metrics supports the bullish outlook by suggesting significant potential for price increases in the future.
Risk appetite increased as U. S. stock markets rebounded on Thursday, with the tech-heavy Nasdaq 100 rising 3.1% and the SandP 500 having its best day since November 2022.

This assisted in reversing losses following a severe loss on Monday that affected cryptocurrency and stock indexes alike. BTC surged by more than 7 percent over the last 24 hours, the largest increase this month. With this action, nearly $100 million in short positions—bearish bets—on futures linked to Bitcoin were liquidated.

This year’s fourth biggest loss for Bitcoin bearish bets was the $100 million liquidation.
Some market observers explained the gains as the result of positive sentiment in the stock market and expectations that Bitcoin will repeat previous market cycles.

Santiment also noted a notable increase in whale transactions on August 5 and 6. As of the first week of April, the figure reached levels never before observed. The recent decline in price that briefly drove Bitcoin below $50,000 have contributed to the sudden increase in activity, witnessed by wallets holding between 10 and 1,000 BTC.
A strategic accumulation phase may be underway, with large holders taking advantage of the chance to purchase bitcoin at a discount, as indicated by the spike in whale transactions during this time.