According to Zen2Invest, a specialist in on-chain analysis and monitoring the movements of large quantities of bitcoins (whales), Bitcoin could be heading for a downturn in the coming weeks. ZenInvest advises investors to be patient and cautious, as the market could be in for a sustained correction.
Zen2Invest points out that, despite the recent approval of the Ethereum ETF, significant on-chain activity has been detected on Bitcoin. It seems that Bitcoin has reached a local peak and could experience a significant decline in the coming days, with notable short-term fluctuations.
Market Scenarios
The analyst adds that, if the correction is not prolonged, a rise could follow, representing the last phase before a mid-cycle peak. Zen2Invest had already anticipated this scenario between April 2023 and January 2024, forecasting a peak before the next Halving, a hypothesis that now seems more likely.
The high number of transactions indicates a period of high current market spending, exacerbated by the emotional reactions of small investors, which could increase volatility in the coming weeks. Zen2Invest also points to the high whale activity, coinciding with the acceptance of the Ethereum ETF, and suggests that this could signal significant market movements.
Conclusion on Market Activity
In addition, Zen2Invest refers to a medium-term on-chain indicator that has just activated, traditionally associated with market tops followed by corrections. This signal coincides with Zen2Invest's forecasts of an imminent decline, reinforcing the expectation of significant activity on the part of the major market entities in the coming days.
