Bitcoin’s recent price drop below $60,000, then a subsequent increase in value. drop below $50,000The recent buying patterns suggest that. could finally be showing signs a reversal. This indicates a large accumulation phase by whales and other institutional investors who are taking advantage of the current price drop to increase their cryptocurrency holdings.
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Bitcoin addresses collectively withdrew over $1.7 billion in Bitcoins from different exchanges. This is the biggest weekly outflow since more than a full year.
Accumulation Trend Amongst Bitcoin Holders
IntoTheBlock’s on-chain data shows that Bitcoin addresses steadily accumulated the coin over the last week. The analytic platform’s netflow data highlights this data. This is important for forecasting upcoming cryptocurrency price trends. This data shows that the outflows are significantly greater than inflows. In fact, $1.7 billion worth of BTC has been withdrawn.
BTC reported a massive $1.7B in net withdrawals over the last week. This is the highest amount recorded in more than a year.
The recent economic downturn has led to the accumulation of large whales. pic.twitter.com/m4INbZmKmB
— IntoTheBlock (@intotheblock) August 9, 2024
The outflow of Bitcoin is usually interpreted to mean that the investors have decided to keep their Bitcoin on the long run, reducing the BTC amount available for exchange.
What does this mean for price?
Bitcoin again fell under $50,000 in last week’s price due to the recent volatility and dynamics of investment markets. This dramatic price drop was the first time Bitcoin had traded below $50,000 for six months. The price drop gave crypto enthusiasts a great opportunity to buy more BTC for a low of six months. The price decline created some buying pressure from traders. This helped support the BTC value and prevent further falls.
The market can be affected by a reduction of Bitcoins available through exchanges. There may be increased buying pressure if there is a reduction in the number of coins for sale. potentially driving up prices Demand can be steady or growing. Bitcoin has reached $60,989 at the time this article was written, after establishing support of $60,000.
The current bullish sentiment may well have been the driving force behind the Bitcoin price reaching the $70,000 level. But the road to $70,000 will be a challenging one. four different resistance levels At $63,730. $65,510. $67.350. $69150.
According to total flows to and from the exchanges, there is still a strong buying pressure. In the seven-day and 24-hour time frames, total flows show a negative value of 12.27% and 61.9%.
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Bitcoin has not yet been rescued, since the depth of the market on the chain exchange shows that there are more buyers than sellers. At the time this post was written, sellers placed sell order of 31,458 BTC for an average price $61,267 at various crypto exchanges. While buyers placed only buy orders of 27,734 BTC on average at $61,263.
Image from Pexels and chart by TradingView
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Source: www.newsbtc.com