Key Points
- Addresses holding 10 to 100 BTC are accumulating more Bitcoin amidst increasing volatility.
- Bitcoin might hit $80,000 before the end of Q3 due to the active participation of retail investors.
Bitcoin holders with 10 to 100 BTC have started to accumulate more of the cryptocurrency.
Despite the increased volatility, it is speculated that Bitcoin could reach $80,000 before the end of the third quarter.
Bitcoin’s Second Leg
Although Bitcoin failed to revisit its all-time high from March, it appears to be preparing for a second leg.
A common feature of a bull cycle is the active involvement of retail investors.
During the 2017 and 2021 cycles, Bitcoin did not peak until numerous small investors entered the market.
Small Investors Show Strength
In March, the rise to $73,750 was driven by institutional capital.
However, the billions of dollars that propelled BTC at that time have been declining for several months, leading to price correction and consolidation.
According to the Whale and Realized Cap metric, the situation may be about to change.
This capitalization model monitors the flow of funds from smaller whales and retail investors.
It was recently reported that the market’s big fishes have been capitalizing on the dip.
Now, it appears that others have joined, as evidenced by the increase in the balance of the 10 to 100 BTC cohort.
In previous cycles, this situation acted as the initial stage of another rally after Bitcoin had experienced a 20% to 30% correction.
Crypto Dan, an on-chain analyst and author at CryptoQuant, shared a similar view.
He explained that the influx of small whales and general investors began to rapidly increase in 2024, and the second half of the bull market has only just begun.
This suggests the possibility of additional capital inflow and a strong rise in Bitcoin in the near future.
BTC May Reach $80,000 Soon
However, this does not mean that BTC will not hit a lower value before another rally begins.
To further substantiate this potential restart of the rally, the volatility around Bitcoin was examined.
At the time of writing, on-chain data indicated that the two-week volatility had risen to 0.02.
Volatility indicates the potential for upward or downward movement.
If the reading is low, it suggests that a cryptocurrency might trade within a narrow range.
On the other hand, increasing volatility suggests that prices may experience significant swings, depending on the buying or selling pressure in the market.
For Bitcoin, its price might see a significant upswing soon, depending on the consistency of retail investors in accumulating the coin.
If buying pressure increases, Bitcoin’s price might jump toward $80,000 around the beginning of the third quarter (Q3).
However, this prediction may not come true if selling pressure continues until then.
