Bitcoin, the largest cryptocurrency, seemingly consolidating around the $47k mark according to CoinMarketCap. It traded at the $46.8k mark at press time after recording a 0.5% correction in 24 hours. So BTC’s price might be consolidating or even reaching a short-term top. But that doesn’t stop holders to continue their march.
Crypto investors appear to have resumed Bitcoin accumulation, a sign they expect the price to rise. According to Glassnode, the outflow of Bitcoin from exchanges in the past 30 days is nearly 100,000. The monthly flow of Bitcoin from such a large-scale exchange occurred several times in history, but most occurred after 12 March, 2020.
On-chain data analytics firm, Glassnode stated,
“Bitcoin exchange outflow volume recently hit a rate of 96.2k $BTC per month. Aggregate exchange outflows of this magnitude have only been seen on a handful of occasions through history, with most being after the March 2020 liquidity crisis”.
Investors typically take direct custody of coins when anticipating a price rise. A continued exodus of cryptocurrency from exchanges implies less selling pressure in the market and scope for a sharp rally.
What’s the ‘gap’ about?
In addition, the flagship witnessed a significant rise in user growth. The data from Glassnode showed that the Bitcoin user growth showcased a sharp rise vs the supply issuance.
This demand-supply gap favored a continued price surge to the north especially after just 2 million BTC left in the circulation. Talking about demand and supply, illiquid supply in on a rise again. 63.15% of the total Bitcoin supply remains illiquid for the last year, which is 0.3% short of the new all-time high.
Renowned analyst Will Clemente, on 3 April, highlighted this impressive statistic.
63.15% of Bitcoin's supply has not moved in at least 1 year.
This is just 0.3% shy of an all-time high. pic.twitter.com/zfcMDrSeGh
— Will Clemente (@WClementeIII) April 2, 2022
Since less supply is available while demand remains the same, the price of the asset would likely rise over the time. Bitcoin could indeed use these bullish indicators to fly past the current resistance level. However, this needs to done quickly before further setback kicks in.