Several chartists warn that Bitcoin could decline toward $30,000 in February as the price action mirrors previous four-year cycles.
Bitcoin’s (BTC) 30% drawdown from all-time highs did little to deter large investors, who continued to increase their holdings throughout January.
Key takeaways:
-
Large holders are buying the dip, signaling long-term confidence.
-
Chartists warn that a bull trap could still drive BTC sharply lower.
Bitcoin sharks are buying the dips
As of Wednesday, so-called “sharks,” which represent entities holding 100-1,000 BTC, were accumulating Bitcoin at their fastest pace since 2013, data from Glassnode showed.
BTC shark net position change (30-day average). Source: GlassnodeThese entities, which typically include early adopters and institutional trading desks, accumulated Bitcoin despite the latest correction to around $87,900 from almost $98,000.
As a result, the accumulation suggested that large investors view the ongoing BTC pullback as a buying opportunity, signaling confidence in its longer-term bullish outlook.
Related: Can Bitcoin regain $90K? Bulls at risk as long-term holders ramp up selling
Historically, similar spikes in shark accumulation preceded strong rallies, including a roughly 160% price gain within a year and the mid-2024 move that saw BTC climb from around $54,000 to over $116,000.
BTC will crash to $35,000 in February, analyst warns
Chartists tracking Bitcoin’s four-year cycle warned that the multi-month slump will continue in the coming weeks.
For instance, analyst Lofty said BTC price can dump to $35,000 in February, citing a “perfect bull trap” after Bitcoin failed to hold above its rising channel’s upper boundary, as shown below.
BTC/USDT chart comparing 2021 and 2026 trends. Source: TradingView/LoftyHe compared the structure to Bitcoin’s 2021 double top, where successive breakout attempts trapped late buyers before a sharp, multi-month sell-off followed.
However, several top crypto companies argued against such bearish scenarios, noting that Bitcoin’s four-year cycle is dead. That included Grayscale Investments, which expected BTC’s price to reach a new record high in the first half of 2026 due to institutional adoption.
Bitwise also predicted 2026 to be an “up year” for Bitcoin.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Source: https://cointelegraph.com/news/bitcoin-sharks-scoop-up-btc-like-it-s-2013-despite-perfect-bull-trap?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
