Bitcoin has made some major gains as the end of July nears. In fact, the king coin closed in the green for the eighth day in a row. Such growth, however, may take a back seat when corrections rear their heads in the market. Now, where does this formation place the investors? Well, it looks like the HODL season is finally here.
Bitcoin accumulation begins
As can be seen from on-chain metrics, net flow volumes saw the highest single-day outflows in 5 years. The last time outflows were close to 60k BTC was back in 2016.
Here, a notable takeaway was the price movement right after this outflow peak in 2016. In less than a month, the crypto entered a short-term bull run. If the pattern is repeated this time, Bitcoin’s price can potentially rise up the charts again.
Bitcoin net outflows reach a 5-year high | Source: Glassnode – AMBCrypto
This extrapolation also comes from the fact that Bitcoin is heading closer to a potential Golden Cross. Historically, this marks the beginning of an uptrend and that uptrend would coincide with the aforementioned historical bullish pattern.
Additionally, if the net realized profit/loss charts are observed, profits touched a 2-month high yesterday. Understanding psychology during such a phase is not difficult. High profits lead to high participation and with people expecting a major boom to apparently have Bitcoin reach $100,000 by the end of the year, their motive and positions moving forward become clear.
This adds to the investor sentiment of HODLing starting now.
Bitcoin realized profits at a 2-month high | Source: Glassnode – AMBCrypto
Who all are HODLing?
While retail investors’ figures are yet to emerge, other major sections of the market have already begun displaying their positions. Accumulation trends observed using Bitcoin addresses show us exactly which group of investors has accumulated coins over the last month. For this month, it seems like accumulation is moving towards Whales and many groups of all sizes.
This is a good sign as many whales dropped out during the May sell-off and only began re-accumulating in June.
Bitcoin accumulation trends | Source: Ecoinometrics
Further, miners had already entered the HODL phase even before whales and investor numbers came forth for the same. In fact, the Miners Position Index found that even at the time of this report, miners were refraining from selling. They are continuing to accumulate Bitcoin and this can further help BTC achieve the aforementioned potential price hike.
Once this pattern is confirmed, Bitcoin demand could escalate, eventually leading to its price shooting up. However, investors, make sure you DYOR and study the markets well before making a decision.
