Crypto: Bitcoin Sharks Scoop Up BTC Like It's 2013 Despite 'perfect Bull Trap'

Several chartists warn that Bitcoin could decline toward $30,000 in February as the price action mirrors previous four-year cycles.

Bitcoin’s (BTC) 30% drawdown from all-time highs did little to deter large investors, who continued to increase their holdings throughout January.

Large holders are buying the dip, signaling long-term confidence.

Chartists warn that a bull trap could still drive BTC sharply lower.

As of Wednesday, so-called “sharks,” which represent entities holding 100-1,000 BTC, were accumulating Bitcoin at their fastest pace since 2013, data from Glassnode showed.

These entities, which typically include early adopters and institutional trading desks, accumulated Bitcoin despite the latest correction to around $87,900 from nearly $98,000.

As a result, the accumulation suggested that large investors view the ongoing BTC pullback as a buying opportunity, signaling confidence in its longer-term bullish outlook.

Related: Can Bitcoin regain $90K? Bulls at risk as long-term holders ramp up selling

Historically, similar spikes in shark accumulation preceded strong rallies, including a roughly 160% price gain within a year and the mid-2024 move that saw BTC climb from around $54,000 to over $116,000.

Chartists tracking Bitcoin’s four-year cycle warned that the multi-month slump will continue in the coming weeks.

Source: CoinTelegraph