Journalist
Posted:
- Bitcoin is up 12.61% over the past seven days.
- The supply of Bitcoin on the exchanges fell sharply last week, indicating strong accumulation.
The bullish momentum was back in Bitcoin [BTC] market as the king coin broke out of its one-month range and rose to $48,000 last week.
At the time of writing, the world’s largest cryptocurrency exchanged hands for $48,313, up 12.61% in the past seven days, according to CoinMarketCap.
The rally ended the prolonged phase of low volatility and got traders into action.
According to on-chain analytics firm Santiment, Bitcoin’s daily trading volume reached $39.31 billion on February 10, the highest in four weeks.
Source: Santiment
Interestingly, the rest of the crypto market, including Ethereum [ETH]remained subdued compared to Bitcoin’s frenetic trading activity.
This indicated the possible decoupling of Bitcoin from the rest of the market.
Bitcoin investors are starting to stockpile
Bitcoin’s strong accumulation fueled the upward momentum. According to AMBCrypto’s research into Santiment data, Bitcoin supply on exchanges fell sharply over the past week.
Furthermore, the Exchange Flow balance has been negative for the past 3 to 4 days, meaning more BTC was flowing out of the exchanges than was flowing in.
This was an indication that investors were gaining confidence in Bitcoin’s long-awaited super cycle in 2024 and therefore started adding to their holdings.
Source: Santiment
Unrealized profits increase
The accumulation was also driven by a sharp increase in network profitability. At the time of writing, BTC holders will earn an average of 12.37% on their investments.
However, the MVRV indicator measurements should be taken with a grain of salt. The more it rises, the more likely it is that traders have historically shown their willingness to sell.
Source: Santiment
Large whale transactions increased as prices rose, but there was no big jump compared to the previous two weeks’ data.
The bullish story is getting stronger
Bitcoin’s press time saw many popular names in the sector turn bullish on the coin.
To that extent, anonymous analyst PlanB, creator of the stock-to-flow (S/F) deflection model, said a bull market was “inevitable.”
🟠95% of all bitcoin in profit: bull market inevitable pic.twitter.com/2TVNzGym8x
— PlanB (@100 trillionUSD) February 10, 2024
Read Bitcoin’s [BTC] Price forecast 2024-25
According to the latest reading of the Bitcoin Fear and Greed Index, broader market sentiment was leaning towards greed.
This meant that more accumulation could occur in the near future, keeping Bitcoin on track to reach $50,000.