Bitcoin (BTC): Cryptocurrency markets had turned their direction down for weeks under the leadership of BTC. Finally, the price approaching the bottom of July rose again from the levels of $ 32,900 to the band of 37,500. Due to the positive news in the evening, the price is still above $36,000. So are panic selling over?
Bitcoin (BTC) Might Have Bottomed
Ancient whales may have emptied their holdings last year, but recent data reveals that demand for BTC shows no signs of fading. Bitcoin (BTC) is being bought aggressively at prices close to $30,000 as bidders begin to draw liquidity from short-term sellers.
Data from CryptoQuant shows that since the end of December, Bitcoin exchanges have once again started pouring their BTC reserves. After a period when traders were sending BTC to exchanges, possibly to sell or recover from further losses, exchanges are now seeing larger overall outflows than inflows. Between December 7 and December 28, 2021, BTC reserves of 21 major platforms tracked by CryptoQuant rose from 2,396 million to 2,428 million BTC.
After that, the long-term downtrend continued and as of Monday, the exchanges total remained at 2,366 million BTC even though spot price action was at a six-month low.
Will Bitcoin Rise?
Meanwhile, CryptoQuant CEO Ki Young Ju believes that older whales, despite showing some impatience in recent years, are still prone to reversing the price trend. In a series of tweets on the subject, he noted that institutions have been the main buyers since 2020, adding, “They seem to have been sold to new players at the top or bottom,” he said.
Despite common knowledge, the currency balance trend now coincides with tangible chain demand from large investors. As noted by CC15Capital, the run to $33,000 was accompanied by millions of dollars worth of BTC purchases specifically from a wallet.
Since August, the account has accumulated $1 billion worth of BTC from a zero initial balance. This event also comes with the long-term owners’ steadfast determination not to sell. Cryptocurrencies that have not moved for a year or more currently make up 60% of the total BTC supply. Whale accumulation, meanwhile, was seen elsewhere in the period following the all-time high of $69,000.
In the light of all these data, Bitcoin may now have found the bottom and turned its direction clearly up.