Is Bitcoin [BTC] are you going through an exciting time? Stock market supply has fallen, big players are buying and leverage on both sides is increasing.
The next breakout depends on which side of the trade is forced out first.
Whales are buying again!
According to data from Alphractal, wallets holding more than 1,000 BTC have absorbed approximately 270,000 BTC in the last 30 days. That is equal to almost 1.4% of the total supply!
Foreign exchange reserves have also fallen to 2.21 million BTC, or 5.88% of circulating supply. That is the lowest in 8 years!
At the time of writing, the whale versus retail delta indicated stronger whale activity, while retail lagged. This does not mean that there will be an immediate outbreak. However, it is safe to assume that larger holders can use this lull to build positions.
The available liquidity on the sell side will decrease.
BTC got stuck between pressure zones
At the time of writing, BTC appeared to be stuck in between heavy liquidation zones, built on both sides. The main upside cluster was at $86,000, and the lower cluster was visible closer to $76,000.
Bitcoin has been trading within a narrow decision zone and the next move could be caused by forced liquidations.
If the price rises, short positions may come under pressure. If Bitcoin goes low, the leveraged long positions could be the first to go. There is enough leverage on both sides to accelerate the next move once a cluster is hit.
An outbreak on the way?
The price of BTC closed around $79,905 on the chart, with an intraday move from around $78,205 to $80,750.
The pace also seemed to pick up, with the RSI near 65 and the MACD leveling off after a brief decline. The histogram also became slightly positive again.
There could be more buying pressure, but it depends on whether Bitcoin can hold above $80,000 and break towards the upper liquidation zone.
Final summary
- Bitcoin whales collected 270,000 BTC in 30 days, while foreign exchange reserves also fell.
- While BTC traded between the $76K-$86K liquidation zones, rising leverage means a breakout is possible.