Bitcoin Price Prediction: Can $163 billion in FOMO accumulation trigger a BTC recovery?

Bitcoin has recently undergone significant sideways consolidation, failing to break through key resistance levels. Nevertheless, the active trading of short-term buyers and new investors in the market has brought in capital inflows, which may present both opportunities and risks for market fluctuations. According to the latest data, over 1.38 million Bitcoins have accumulated in the $115,500 to $120,000 range, a situation that could influence the market direction, especially during the current turbulent consolidation phase.

Bitcoin investors are active, and capital inflow is intensifying

According to URPD (UTXO Realized Price Distribution) data, over the past two weeks, Bitcoin has accumulated more than 1.38 million Bitcoins in the range of $115,500 to $120,000, valued at over $163 billion. This indicates a significant influx of short-term holders and new investors into the market recently. Most of these buyers are likely to choose to sell for profit or to stop-loss when the market experiences a pullback, which may lead to severe fluctuations in the market, especially when Bitcoin encounters resistance or price retracement.

The macro momentum of Bitcoin shows complex signals

The macro momentum of Bitcoin has shown mixed signals. Analyst Kyledoops pointed out that unlike in 2017 and 2021, when Bitcoin experienced a trend of capital inflow before large-scale sell-offs, the current capital flow pulse for Bitcoin has declined as it approached $120,000. This indicates that large investors are not transferring their held Bitcoins to exchanges, suggesting that long-term holders (or so-called "diamond hands") may not have much motivation to sell.

As the continuous decline of Bitcoin's capital flow pulse may indicate that institutions and major investors are adopting more cautious investment strategies, the liquidity of capital flow in the market may be affected.

Bitcoin price has yet to find a clear direction, and fluctuations may continue

Currently, the Bitcoin price is consolidating within the range of $117,261 and $120,000, with the $120,000 level being a key psychological resistance level. If this level is breached, it may trigger profit-taking among some coin holders in the market, especially those investors who are skeptical about the current rebound.

Considering the complexity of market sentiment and the influx of short-term investors, Bitcoin may continue to maintain a sideways consolidation situation. The price may further dip below $117,261, but it is expected that Bitcoin will remain above $115,000, providing some support and avoiding significant downward movement. The current consolidation phase may last for several days until the market digests the impact of the recent capital inflows.

FOMO-driven buying may push Bitcoin to break $120,000

However, if investors maintain their confidence and continue to hold their positions driven by FOMO (Fear of Missing Out) sentiment, Bitcoin could potentially break through the $120,000 mark, ultimately aiming for $122,000. If this happens, the current bearish sentiment will be completely invalidated, and Bitcoin will have further upward potential.

Conclusion: Although Bitcoin is currently in a consolidation phase, the influx of new funds in the market has brought uncertainty to short-term fluctuations. However, with the potential drive of FOMO sentiment, breaking the key resistance level of $120,000 remains the focus of the market. Investors need to pay attention to changes in market sentiment and adjust strategies to cope with possible price fluctuations.