Bitcoin Accumulation Thesis Gains Strength Amid Downside Risk

Market analysts are noting a curious mix of stress and accumulation in the Bitcoin market, with momentum indicators reaching historic lows while on-chain data indicates steady purchasing activity.

The daily and two-week Relative Strength Index (RSI) readings for Bitcoin are at unprecedented lows, but this is being seen as a potential buying opportunity by some analysts. The lowest RSI reading ever recorded has been cited as a rare but potentially constructive setup for long-term investors.

On-chain data from Glassnode via CryptoQuant shows that larger investors have been adding to their holdings, with wallets holding 1,000-10,000 BTC increasing their balances by around 53,000 BTC over the past two months. In contrast, smaller retail participants have also been stepping up their buying activity.

This mixed picture is seen as a constructive on-chain stance where non-whale and retail accumulation sits alongside selective whale activity. Market technicians are also eyeing potential bottom zones using price-structure tools, including a quarterly fair value gap (FVG) spanning roughly $56,800 to $44,600.