TechFlow news, according to the latest report from CryptoQuant, Bitcoin (BTC) is at a "critical point," with multiple on-chain indicators signaling further downside risks, while whales are accumulating BTC at the fastest pace in a year.
After reaching new highs in March, Bitcoin's price has been on a downward trend, dropping to a two-month low of $53,500 on July 5. Although it rebounded above $57,000, continued Bitcoin sales by the German government and repayments from Mt. Gox still pose threats to BTC.
The CryptoQuant report shows that the Profit & Loss (P&L) index is hovering around the 365-day moving average (MA); a break below this level could push Bitcoin into a significant correction. Additionally, the bull-bear market cycle indicator is approaching a critical level, and if prices fall further, it may shift into a bear market.
Meanwhile, Bitcoin whales have been actively accumulating during the recent downturn, increasing their holdings by 6.3% over the past month. Institutional investors also poured significant funds into spot Bitcoin ETFs at the beginning of July, indicating rising demand for BTC.
From a technical perspective, Bitcoin’s short-term resistance stands at $59,000, supported by the 200-day simple moving average (SMA). Bulls need to turn this resistance back into support to avoid further losses.
