Experts say bitcoin is moving into an accumulation phase

The cryptocurrency market followed a downtrend for almost the entire 2022 year. According to cryptocurrency analysts and experts, the bearish cycle may finally end soon.

Experts say that sellers have lost their power by the end of the year and will no longer be able to have such an impact on the market as before. All they can do is a few speculative moves.

Over the past 2 days, the flagship crypto asset has risen by more than 5% and has so far settled above $17,700. This was influenced, among other things, by macroeconomic news that came from America. It became known that the consumer price index in November fixed at 7.1%, which is less than what was shown in October. At the end of the tenth month, the price index stood at 7.7%.

Analysts argue that against the backdrop of such events, it is time for Bitcoin to enter the accumulation phase. According to the observations of BTC cycles, after the bearish cycle, there comes a time when investors begin to actively buy the main crypto asset at favorable prices. A similar behavior of market whales was seen in the accumulation cycle of 2019 and 2020.

This period precedes the halving, which is scheduled for 2024. According to some information, it may be postponed to the end of 2023 due to the previously shown high hash rate.

In November 2022, due to the long sale of the main crypto asset by miners and investors, the coin was able to reach a two-year low, which can also be called an extremely strong support level. So far, this has happened - BTC has shown a rebound from the $16,500 level and went up and, at the time of writing, is already valued at $17,800 per unit.

According to analysts, bitcoin may soon reach the level of $20,000 due to macroeconomic news, which can be called favorable for the economy. However, the rapid growth of BTC in the coming days is most likely not worth it, since there will be no point in the accumulation phase if the cryptocurrency goes up quickly enough.

Institutional investors have a goal to collect as many bitcoins from weak hands as possible in order to then go on the move and fix big profits.

A meeting of the US Federal Reserve System is scheduled for December 14. Based on its results, it will be announced how the monetary policy will be adjusted. Jerome Powell, who is the head of the Fed, has previously suggested a potential slowdown in the refinancing rate.

If the rate increase is 0.5%, as expected by investors, then after the announcement of the results of the meeting, the main crypto asset will most likely not show volatility, but will remain at a more or less the same price with possible small deviations.

Representatives of the North American market CME Group and their division FedWatchTool report that the probability of a 0.5% refinancing rate increase is approximately 79.5%. Thus, we can conclude that in the near future, Bitcoin is likely to move sideways, avoiding a high level of volatility.

Finally, it is worth adding that the accumulation of bitcoin has been talked about for a long time. Similar opinions were expressed both in August and September 2022, and in January-February. However, when such behavior has been observed in the market for a long time, and there will be a halving in 2024, then BTC is likely to go up in the near future.