- Bitcoin bulls caused some controversy as the market showed signs of accumulation.
- BTC could secure enough momentum to pull away from ascending support.
There is no doubt that Bitcoin [BTC] and the rest of the crypto market have been going through a phase of relatively low volatility in recent weeks. The longer this continues, the greater the chance of explosive volatility. But in which direction will the market swing?
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Let’s start by reviewing the latest findings regarding Bitcoin holders. According to recent Glassnode findings, the BTC amount of lost or HODLed coins is now at a new 5-year high. But does this mean that Bitcoin’s bullish momentum is on the rise?
📈 #Bitcoin $BTC The amount of HODLed of Lost Coins just reached a 5-year high of 7,803,692,388 BTC
View statistics:https://t.co/dJK8rxBVD3 pic.twitter.com/vb4dTp2Ezp
— glassnode alerts (@glassnodealerts) August 9, 2023
The amount of HODLed or lost BTC was 7.8 million Bitcoins at the time of writing. The fact that BTC holders are opting for HODL is a good sign for the bulls. This could explain why selling pressure was limited.
However, it is not the only sign pointing to a bullish outcome.
Whales are finally warming up to Bitcoin
A look at whale activity revealed that demand for Bitcoin has improved recently. For example, addresses with balances of at least 1,000 BTC recorded a significant increase from August 6 to August 10. More impressively, addresses with at least 10,000 BTC registered a major spike between August 7 and August 10.
This confirmed that whales were collecting BTC again.
Source: Glassnode
Whales have a significant impact on asset prices, so growing demand from whales could result in more upside. Interestingly, these findings occurred at a remarkable point in Bitcoin’s price action.
The cryptocurrency’s price action is trading within a support and resistance bound up channel. Bitcoin’s price weakness recently led to a retest of the rising support line.
Since then, we have seen Bitcoin regain some bullish momentum in line with its recent whale accumulation. BTC changed hands for $29,502 at the time of writing.
Source: TradingView
Bitcoin’s MFI indicator confirmed the resurgence of bullish momentum. However, only a slight increase has been observed lately, indicating that bullish momentum is still low.
The derivatives segment also showed similar optimism. Both futures and options Open interest recently recovered after an earlier drop in July.
Source: Glassnode
How much are 1,10,100 BTC worth today?
The above findings confirmed that Bitcoin swung in favor of the bullish side. In addition, the regulatory environment has gradually improved and more is in the pipeline.
El Salvador is one of the countries that has played a key role in paving the way towards a regulatory structure.
🇸🇻El Salvador @nayibbukeleknown for adoption #Bitcoin as legal tender in 2021, has paved the way for regulation of digital assets.
🔶 @binance‘s recent milestone as the 1st fully licensed crypto exchange is a testament to that.
The appeal of the crypto market in El Salvador… pic.twitter.com/aBwKo0dJDX
— Orion M. Depp (@OrionDepp) August 9, 2023