Bitcoin could surge 20% after flash crash and breaking $50,000 in early August. However, the coin will remain in a tight range as long as there is excitement.

Looking at the events in the daily chart, we can see that Bitcoin is now moving between $57,000 and $63,000. The price is stuck in a sideways movement, even though traders are optimistic and expect prices to rise in the coming days.

Bitcoin Consolidates, But Addresses Pile Up

As prices consolidate horizontally and bulls struggle to break $63,000 and register new gains, on-chain data points to strength and confidence. While the stagnation has led to the formation of a tight and even boring range, Glassnode notes that players accumulate.

Looking at the Glassnode Accumulation Trend Score (ATS) for Bitcoin, the figure recently rose to 1.0, its maximum value. This development signifies a strong shift back to accumulation, with large entities, mainly institutions and whales, steadily accumulating and taking advantage of the current low prices.

Earlier, the ATS revealed a widespread distribution, which affected prices. Most importantly, when this happened after prices peaked in March, there was a flood of supply across all wallets.

BTC holders were more likely to unload and take profits. This trend is to declineespecially seen in addresses managed by spot Bitcoin ETFs.

BTC HODLers Join in While Speculators Run Into Trouble: What Now?

According to Glassnode, the entry of HODLers and large entities is a huge confidence boost as they are positive about what is to come. This interest is evident in the addition of over 300,000 BTC to long-term holders (LTHs) in the past three months.

Moreover, as this looks, an analyst said observes that the long/short-term holder ratio has increased by 8.7% over the past month. This increase shows that LTHs are holding more BTC.

Amid this, demand among short-term holders (or addresses that have purchased within the last 155 days) is waning. As STH activity slows, that translates into more stable price action, allowing LTHs to double.

For now, traders should wait for clear signals. While aggressive traders may buy the dip, more conservative traders may want to wait for a clear break above $63,000 before committing. Any rise could take prices to the multi-month resistance zone between $70,000 and $72,000.

Main image from Canva, chart from TradingView