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Following a brief dip to $112,200, Bitcoin ($BTC) has recovered slightly, trading around the $116,300 level at the time of writing. While concerns remain about $BTC’s inability to decisively break the $120,000 resistance level, on-chain data suggests the asset may be in an accumulation phase – potentially gearing up for its next breakout toward a new all-time high ($ATH).
Bitcoin Currently In Accumulation Phase, Analyst Says
According to a CryptoQuant Quicktake post by contributor BorisVest, a strategy called Smart Dollar-Cost Averaging (DCA) may help Bitcoin investors accumulate the asset more strategically and improve long-term performance.
In his analysis, BorisVest noted that investors often struggle to time their entries into $BTC. Many tend to buy during local tops due to fear of missing out (FOMO) and avoid entering the market during bottoms out of fear of further declines.
Smart DCA offers a way to bypass these emotion-driven decisions. The strategy recommends accumulating $BTC when its market price falls below the 1-week to 1-month realized price – a period during which short-term holders are often in loss, resulting in heightened sell-off. BorisVest explained:
At these levels, short-term holders are usually underwater, leading to increased sell pressure. Smart DCA activates hourly purchases during such periods, helping to bring the $BTC and USD cost basis closer together.
Currently, the 1-week to 1-month realized price stands at approximately $117,700. As long as $BTC trades below this level, Smart DCA continues to flash an accumulation signal. Once $BTC climbs above this threshold, the strategy advises gradually selling previously accumulated coins.
With Bitcoin now trading near $116,000, the analyst suggests that the asset is still in an accumulation phase – though it’s approaching the realized threshold. According to data from CoinGecko, $BTC remains about 5.2% below its $ATH of $122,838, recorded on July 14.
Is $BTC Unlikely To Hit A New $ATH?
Despite holding steady around $115,000, some analysts warn that Bitcoin’s realized price is slowly beginning to show signs of fragility. A drop below the $105,000 mark could lead to increased downside momentum, potentially triggering a larger sell-off.
Notably, Binance’s net taker volume has slipped back into negative territory, raising concerns about a near-term correction. Additionally, rising Bitcoin ETF outflows have shown signs of weakness, adding another layer of uncertainty.
Still, not all indicators are bearish. Some on-chain metrics suggest $BTC may simply be entering a cooling-off period after a brief overheated phase. At press time, $BTC trades at $116,316, up 2.1% in the past 24 hours.
