As the market entered the fourth quarter of 2021, craze for the top coin seemed to be fading, largely due to its limited trajectory and the inability to break the all-important $ 49,300 mark since the crash. Although Bitcoin managed to bounce off the dangerous $ 30,000 mark in late July, and most recently $ 40,000, many have commented that BTC seems to be getting boring these days.

The accumulation continues

The market has high expectations for the top coin as the fourth quarter approaches and it is safe to say that BTC is not meeting them. In fact, since its July low of $ 29,300, BTC is still up nearly 50%. However, hopes of a repetition of the bull market-like process after the 2017 halving have been dashed.

Even so, the accumulation trend shows no worrying signs. The little fish has returned to the accumulation level last seen when BTC hit $ 64,000 ATH, now the price is about $ 20,000 lower. Cash flow gives us a good idea of ​​where the coins are going and what the little fish and whales are doing. Currently, small fish (addresses less than 1 BTC) are buying more, while whales (addresses 1 to 10,000 BTC) appear to buy for around $ 40,000.

The source: Ecoinometry

In addition, since foreign exchange outflows have dominated inflows for so long, the trend suggests that the supply of coins for sale is shrinking. Given the decline in supply coupled with accumulation, the medium to long-term trend is generally bullish.

Price growth looks good

The circulation of Bitcoin is an important metric and an important driver for price increases. On September 29th the index was at ATH by mood and that is a good sign of recovery. It shows whether or not the market price may rise in the future.

Over the past 3 days, BTC has put an average of 189,200 unique tokens in circulation, which is its highest level since late July (when BTC rose 31% over the next 5 weeks).

Source: Santiment

In addition, the Owner Composition indicator over time finds that even at $ 43,500, about 79% of addresses make a profit, while 5% break even and 16% lose money.

The dilemma is not over yet

Despite many medium-term bullish indicators, BTC remains stuck in consolidation mode and appears to be waiting for the next big move that could trigger further accumulation and a surge to the upside.

In particular, the MVRV represents a 100 percent increase in the Bitcoin position of market participants when the indicator registers a value of 2. However, with the price consolidating, contestants may be tempted to double the profit. Given the scarcity of supply, the overall price is unlikely to rise if demand for the asset falls.

Overall, at the time of writing, the market is in a classic “wait and see” state. However, the future of BTC looks promising as the indicators turn bullish.

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