Bitcoin Falls 5% Despite Continuous Investor Accumulation

Investors who were continuing to buy bitcoin did not prevent the highest cryptocurrency at market value from slipping over $ 2,600 on Wednesday.

Bitcoin fell from $ 36,000 to $ 34,000 this morning (UTC time) and was last seen changing hands near $ 34,300, representing a 5% fall on the day, according to CoinDesk 20 data.

While the cryptocurrency is down, it is still within a narrow week price range, as seen on the chart below.

Moving under the lower end of the triangle would reveal support at $ 30,000. A strength in the Dollar Index (DXY), which tracks the value of the greenback against other major currencies, could trigger a breakdown of the bitcoin range. The performance of the DXY has had a major influence on the price of bitcoin since the crash in March. At press time, the DXY is evenly lined near 90.50.

Odds seem, though, to be stacked against a marked fall in prices, as bitcoin investors are undermined by a bull market break and continue to boost its holdings.

The number of addresses holding at least 1,000 BTC, has risen from 2,407 to a new age peak of 2,438 in the past seven days, according to a Glassnode data source. The rise does not necessarily imply the same growth in the number of investors, as a single person or entity can hold multiple directions.

Meanwhile, the number of bitcoins locked in accumulation addresses has increased by 30,000 to 2,739,166 BTC in the past week. Accumulation addresses are those that have at least two incoming “dust-free” transfers that have never spent money. Dust refers to very small amounts of the digital asset.

The metric does not include references belonging to miners and exchanges, nor does it include addresses that were last implemented more than seven years ago to adjust for lost coins.

Finally, Grayscale Bitcoin Trust (GBTC), the largest publicly traded crypto investment trust, buy a total of 16,244 BTC ($ 607 million) on Monday, sucking up much more supply from the market than miners had added.

Grayscale inflows helped push the price rally from $ 15,000 to over $ 41,000 seen in the past three months and are pivotal for the bull market’s survival, according to JPMorgan. Grayscale is owned by Digital Currency Group, the parent company of CoinDesk.

It remains to be seen if continued purchases from large investors turn into a rapid recovery. Breaking out of the narrowing price range would suggest a continuation of the bull run and open the doors for the $ 50,000 psychological barrier.