Bitcoin has recaptured the high area around $ 50,000. In the meantime, the indicators are turning bullish as the cryptocurrency could prepare for another rise in uncharted territory.
At the time of writing, BTC was trading at $ 57,654, up 3.1% on the daily chart. On the weekly chart, BTC is up 7.5% with the move moving sideways on higher time periods.
Analyst William Clemente has defended the bullish case for the number one cryptocurrency by market capitalization. He claims that Bitcoin’s capital base has increased with a price movement and distribution of supplies unusual for top local companies. As can be seen from the graph below, 14.45% of the BTC supply is around $ 57,000, which serves as important support.
The supply of BTC has become a major factor in the price increase. As the graphic and Clemente have shown, BTC moves “consistently” into cold rooms or addresses in order to hold them. The trend continues to accelerate with no signs of slowing down.
Additionally, BTC’s Realized Cap HODL Waves, which measures the age distribution of the supply, or the length of time a percentage of the supply has traded, only just hit its first high for this bull run. As Clemente said, for any bull market there are at least three spikes in this metric.
New investors could be behind Bitcoin’s recent sell-off using the Entity-Adjusted ASOL for a 2-week average, a metric used to measure the number of transactions made by individual companies. Clemente said:
(Who is selling BTC?) The answer is newer, inexperienced entrants. The average age of coins sold has been falling steadily since February.
Increase in Bitcoin Exchange outflows
Data from CryptoQuant supports the above: According to Glassnode, 11,000 BTC will be moved from the Coinbase Pro service and 7,200 across all exchanges. In less than 24 hours, more than 12,000 BTC appear to have left the exchange in the cold store. As the graph below shows, the price goes up every time there is a large BTC outflow on this platform.
Additional data from Santiment showed an increase in the BTC whale. Around 86 addresses hold 10,000 BTC, 120,000 BTC only accumulated in April. The company claims it was the “most sustainable accumulation since July 2019” during this period. Clemente concluded his bullish theory with the following statement:
Coins move from weak to strong hands. We are in a massive middle consolidation this cycle. Don’t be freaked out by short term price action, this bull run has a long way to go before it overheats. HODL continues.