Bitcoin is experiencing a significant reduction in selling pressure, with Spent Volume down to 529,000 BTC and whales shifting to accumulation, causing Netflow to drop to -128 million USD, boosting the potential for price increase.
Whales are focused on withdrawing Bitcoin from exchanges and accumulating in personal wallets, contributing to reduced supply pressure; however, price volatility may return if selling pressure reappears.
MAIN CONTENT
The wave of Bitcoin selling cools down as Spent Volume drops significantly, with large investors choosing to hold instead of selling.
The Exchange Whale Ratio and Netflow both decrease, indicating strong accumulation from whales and institutional investors.
The price of Bitcoin could recover to $117,000 or higher if selling pressure remains low, but it still faces the risk of a reversal if supply forces appear.
Bitcoin reduces selling pressure: What are the reasons?
The wave of Bitcoin sell-offs has decreased after the average 7-day Spent Volume fell to 529,000 BTC per day, leading to a significant contraction in selling supply according to Axel Adler (CryptoQuant).
CryptoQuant's report indicates that a deep decline in Spent Volume (SMA-7d) is a clear sign that large selling groups have withdrawn from the market at the current price range. This primarily occurs because Bitcoin's recent performance has not met expectations, reducing profit-taking momentum among investors.
Data from Checkonchain shows that the realized profit of both long-term and short-term investors has decreased: the long-term holder group only recorded 7,200 BTC in profit, while the short-term group only reached 1,800 BTC, despite a slight price recovery. This reflects confidence in long-term growth potential, as many investors choose to continue holding rather than immediately taking profits.
Whales withdrawing Bitcoin from exchanges: A sign of strong accumulation?
The movement of whales in the Bitcoin market leans towards accumulation as they withdraw large amounts of Bitcoin from exchanges to personal wallets, reducing public selling activity.
"Typically, when the Whale Ratio decreases, it means that the large supply from whales preparing to sell is no longer available, instead shifting to private wallets, signaling a potential price increase."
– Axel Adler, analyst, CryptoQuant, quoted in a statement on X on June 20, 2024
According to CryptoQuant, the Exchange Whale Ratio has fallen to the lowest level in 12 days, reaching 0.43. This indicates that the amount of BTC transferred from whales to exchanges is much lower than total flow. When whales do not send BTC to exchanges, it reflects an accumulation sentiment or expectations of price increase.
Checkonchain data indicates that MegaWhales and exchanges (holding >10,000 BTC) have reduced their balance by 20,360 BTC, meaning withdrawals exceed inflows. This movement often appears before strong price increases when large holders accumulate rather than sell into the market.
Decreased selling supply, increased accumulation: Does it create upward momentum for Bitcoin?
AMBCrypto's analysis shows that the price of Bitcoin has recovered due to rapidly declining selling pressure and whales continuing to accumulate heavily, causing Netflow to reach a negative -128 million USD, confirming a net buying trend in the market.
"If the whale group continues to absorb supply, the price of Bitcoin is likely to surpass $117,000 to test the $119,600 region in the short term."
– Market analysis report, AMBCrypto, June 20, 2024
The negative Netflow also confirms that outflows from exchanges are greater than inflows, implying long-term Bitcoin holding to expect price increases rather than preparing to sell. Historically, strong accumulation cycles from large holder groups have always created upward momentum for Bitcoin prices in the following phases.
However, experts also note that if selling pressure reappears, the price of Bitcoin could very well return to test the support level of $112,000, especially during strong market volatility or the emergence of short-term liquidity shocks.
Can Bitcoin hold the $112,000 mark if selling pressure returns?
Although buying pressure from whales is creating upward momentum, if large selling groups return, the price of Bitcoin faces the risk of retesting the important support level of $112,000.
The history of previous corrections shows that when strong selling pressure appears from holder groups, Bitcoin can quickly drop to established support levels. Therefore, investors should closely monitor money flow indicators and large wallet activities to prepare for a reversal scenario.
Comparison table of factors impacting Bitcoin price currently
Factors Positive impact Negative impact Wave of sell-offs Strong decline, selling supply shrinks May rebound if negative sentiment arises Whale movements Strong accumulation, withdrawing BTC from exchanges – Netflow -128 million USD (negative) Positive (may reverse if large sales occur) Price increase potential Testing the $117,000 – $119,600 region Easy to break support at $112,000 if large selling pressure appears
Frequently Asked Questions
1. What does the decrease in Spent Volume of Bitcoin mean?
The significant drop in Spent Volume means that selling supply is shrinking, indicating that investors tend to hold Bitcoin and expect an upward trend, according to CryptoQuant data.
2. How does the Exchange Whale Ratio affect the price of Bitcoin?
When the Exchange Whale Ratio decreases, it indicates that the amount of BTC going to exchanges from whales is reducing, reflecting an accumulation sentiment and often contributing to upward price movement.
3. How does negative Netflow impact the market?
Negative Netflow proves that the outflows from exchanges are greater than inflows, indicating strong buying signals and sustainable price increase expectations from large investors.
4. What factors could cause Bitcoin to return to $112,000?
If selling pressure increases significantly from holder groups or unexpected negative information arises, the price of Bitcoin could quickly adjust back to the support level of $112,000.
5. Where is the buying accumulation movement of Bitcoin whales reflected?
Indicators such as Exchange Whale Ratio decreasing, negative Netflow, and large balances withdrawing from exchanges indicate that whales prioritize accumulation and are not pushing BTC onto exchanges to sell.
Source: https://tintucbitcoin.com/ca-map-rut-btc-bitcoin-hoi-phuc/
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