Bitcoin accumulation patterns continue to point to the fact that the recent rally might not be ending anytime soon. Investors have continued to hoard assets as the volume of bitcoins sent to exchanges to be sold off or traded falls below the accumulation rate.
Outflows from exchanges have continued to exceed inflows into exchanges. Signaling accumulation patterns rather than sell patterns.
Related Reading | On-Chain Expert Predicts $162K Bitcoin Peak This Cycle
Wednesday saw the price of bitcoin dropping below $38,000 to be trading in the $37,000 range. Inflows of 11.3K BTC to exchanges correlated with this drop in price. But then the next two hours following this price dip saw more outflows of bitcoins from exchanges. 19.3K BTC were removed in the next two hours following the price dip. Showing investors were accumulating their coins rather than selling.
Exchange Reserve Volumes Continue to Plummet
Outflows from exchanges to personal wallets for safekeeping continue to be on the rise. Bitcoin exchange reserve volumes have seen decreasing numbers following the price crash from the all-time high, and the number has continued to go down. More coins leaving the exchanges than coming in shows that there is currently no selling pressure. Thus, accumulation is the order of the day as investors try to get their hands on as many coins as they can.
Related Reading | Bitcoin Set To Outperform In Second Half Of 2021, Bloomberg Analyst
Just over a week ago, a report from CryptoQuant showed that the volume of BTC currently held on exchanges dropped over 100K in just the span of two days. Numbers like these often indicate that there is significant buy pressure in the market. And buy pressures usually lead to accumulation, which in turn drives the value of the asset higher.
Top exchanges continue to see large volumes of BTC leaving their exchanges on the daily. Centralized exchanges like Binance and Coinbase have seen the highest number of Bitcoins moved out of their exchange.
Related Reading | Bitcoin To Surpass $120,000 In A Year, Says Pantera CEO
Investors continue to see the merit in investing in cryptocurrencies like BTC. Indicators show that general market sentiment continues to buy and hold. So, these investors are going to continue to buy as many bitcoins as they can, and hold these coins in wait for bull rallies.
Bitcoin Continues To Move Forward
Bitcoin continues to see favorable outlooks despite the price taking hits in the market. Following El Salvador’s lead, as they make BTC a legal tender, Uruguay recently proposed a bill to also make the cryptocurrency legal tender in the country.
Megabanks JP Morgan and Wells Fargo have both announced that their high-net-worth clients would have access to investment options that would provide them exposure to the crypto market. Hopefully leading to the opening of these investment options to the rest of the general public.
BTC price close to testing $41K resistance point | Source: BTCUSD on TradingView.com
Market analysts continue to see bullish movements in the price of the asset. With on-chain data analysis showing that daily transaction volumes are up following the recent price rally.
With so many bullish indicators, it is no stretch to think that the rally might just be beginning. Bitcoin still may be able to break $50K before the year runs out if these indicators are anything to go by.
Featured image from Flickr, chart from TradingView.com