The accelerated Bitcoin (BTC) purchases by institutional investors and some nation-states have reduced the overall selling pressure on centralized exchanges.
Bitcoin (BTC) supply on cryptocurrency exchanges has dropped to the lowest level since December 2021 amid heightened demand. According to on-chain data analysis provided by Santiment, Bitcoin supply on exchanges has dropped to about 942k coins, worth around $64 billion.
Meanwhile, Santiment indicated that the supply of Ethereum (ETH) and Tether (USDT) has gradually increased. Ideally, an increase in exchanges’ balance is attributed to an increase in selling pressure and vice versa.
However, the increase in stablecoins supply in exchanges is perceived as an increase in the overall buying pressure, thus a bullish sentiment. Moreover, the stablecoins industry has in the past been used as the exit liquidity from the high cryptocurrency volatility.
According to on-chain data analysis provided by CryptoQuant, more than 20K Bitcoins have been accumulated by crypto whale wallets in the past 48 hours.
The heightened crypto whale accumulation for Bitcoin has triggered heightened volatility, and also liquidation for leverage traders. Meanwhile, El Salvador has been purchasing 1 Bitcoin per day in addition to its mining operations, thus holding more than 5,779 coins.
$BTC: Are whales still buying?
“More than 20,000 #Bitcoin flow to whale wallets. It appears that the whales took advantage of yesterday’s correction in Bitcoin and accumulated additional quantities.” – By @abramchart
Read more 👇https://t.co/OAXOA5uBFz pic.twitter.com/KUDnP6BVyb
— CryptoQuant.com (@cryptoquant_com) June 12, 2024
Direct Impact on Bitcoin Price Action
Bitcoin price has continued to consolidate below $72K and above $61K in the past four months. The flagship coin has seen its crypto market dominance gradually increase to about 55.62, since the beginning of last year.
The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, Thailand, Hong Kong, and Australia has significantly improved the bullish sentiments. Moreover, Bitcoin price has hovered around 2021’s all-time high (ATH) during the past few months, in a different manner compared to prior major bull cycles.
According to a popular crypto analyst alias Captain Faibik, Bitcoin price has been forming a descending broadening wedge on the daily timeframe. However, the crypto analyst indicated that Bitcoin price against the United States dollar must consistently close above the resistance level of around $72K in the coming weeks.
$BTC Descending Broadening Wedge on the Daily Timeframe Chart is Still in Play.
Bitcoin bulls need to clear the $71.3k Resistance to confirm the breakout.
Once the wedge breakout happens, the bulls' party will start. 🔥📈#Crypto #Bitcoin #BTC pic.twitter.com/uqsQGVcEaH
— Captain Faibik (@CryptoFaibik) June 13, 2024
If the Bitcoin whales continue with the high accumulation rate as observed in the recent past, the likelihood of a bullish reversal will significantly increase. In such a case, Bitcoin price will be aiming for the next midterm target of between $80K and $86.8K, which coincides with the 0.5 and 0.618 weekly Fibonacci Extension.
Bigger Picture
The heightened adoption of Bitcoin by institutional investors is an indication of increased liquidity for the altcoin industry. As a result, the inevitable altseason will be wilder than prior bull cycles.
Furthermore, the recent approval of spot Ethereum ETF in the United States and Hong Kong has signaled a possible approval of similar products for other altcoins. Additionally, more investors can seamlessly invest in the cryptocurrency industry in the near term.
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