Bitcoin, is the accumulation phase over... proposing a breakthrough to $142k?

Cryptocurrency analyst Merlijn The Trader proposed a market structure model, suggesting that Bitcoin (BTC) may be going through an “accumulation” phase and entering the next upward cycle. He analyzes based on institution-led trading cycles, believing that the current trend could be the beginning of a strong rebound.

According to the chart he publicly shared on the X platform, the model indicates that Bitcoin will go through multiple stages. First, during mid-2024, it experiences a “distribution” phase between $100k and $120k; then a “washout” phase from about $100k down to $62k. The analysis suggests this process will clear out weaker buy orders in the market.

Subsequently, the current stage is described as an “accumulation” phase between $60k and $77k. As Bitcoin fluctuates within a narrow range without a clear direction, the analysis considers this to be a process where institutional investors are collecting positions. Merlijn The Trader further points out that there may also be a “re-accumulation” phase between $80k and $95k in the future.

He states that if this trend develops as expected, Bitcoin (BTC) could target over $142k and potentially reach a new all-time high around January 2027. However, he warns that the support level near $70k is critical; if this level is broken, the entire model could be destabilized.

Recently, Bitcoin has been trading around $75,550. There are differing interpretations in the market about whether large funds are accumulating or if the current range is a true “bottoming” phase or just an intermediate stage of further correction.

Summary by TokenPost.ai 🔎 Market interpretation: Analysis suggests Bitcoin has entered an “accumulation” phase, interpreted as a range where institutional investors are collecting positions. After experiencing a previous distribution → sharp decline (washout) → sideways movement, the market has cleared weak buy orders. There are differing opinions on whether the current range is a bottom formation or an intermediate stage of a decline. 💡 Strategy key points: Maintaining the $70k support level is a critical variable. In the $60k to $77k range, a phased entry strategy is effective before a clear trend emerges. If the market enters an $80k to $95k re-accumulation zone, attention should be paid to the possibility of a trend reversal. 📘 Terminology explanation: Accumulation: The phase where institutions collect positions at low prices. Distribution: The phase where holdings are sold to the market at high points. Flush: The process of causing weak investors to exit through sharp declines. Re-Accumulation: The sideways collection of positions in preparation for further upward movement. 💡 Frequently Asked Questions (FAQ)

Q. What stage is Bitcoin currently in? Analysis indicates that Bitcoin is currently in an “accumulation” phase fluctuating between about $60k and $77k. The price movement within this range is sideways with no clear direction, interpreted as a slow collection of positions by institutional investors. Q. Why is the $70k price level important? $70k is a key support level in the current market structure model. Maintaining this price would sustain the bullish scenario; losing it could increase the risk of further decline and potentially destabilize the entire analysis. Q. How do you view Bitcoin’s future prospects? According to the analysis, after the accumulation phase, there may be a re-accumulation (between $80k and $95k) leading to an upward trend. If this scenario materializes, Bitcoin’s long-term target price could even exceed $142k.

TP AI notes: This article summary is generated using the TokenPost.ai language model. The main content may be omitted or may differ from actual facts.