The price of Bitcoin (BTC) surpassed $16,000 with strong momentum and has remained above the resistance-turned-support area since the initial breakout. Yet, traders are turning slightly cautious, anticipating a “reaccumulation” trend in the near term.
The term reaccumulation refers to investors gradually rebuying Bitcoin after a massive rally. This allows the dominant cryptocurrency to consolidate, rebuild momentum, and neutralized the overheated market.
There are several reasons to expect a reaccumulation trend or consolidation could occur in the foreseeable future. These factors are historical cycles, greed in the market, and high unrealized profits.
The 1-hour price chart of Bitcoin. Source: BTCUSD on TradingView.com Historical Cycles Point Toward Bitcoin Reaccumulation in the $15K Region
Technical analysts, including John Bollinger, have said consolidation in the Bitcoin market is becoming increasingly likely.