The world’s largest cryptocurrency Bitcoin (BTC) continues to trade under $26,000, entering a phase of strong consolidation. Nonetheless, on-chain data reveals that BTC whales persistently accumulate at every dip. According to a report by Santiment, Bitcoin whales accumulated nearly 60,000 BTC during the recent price correction of 10% over the past few weeks. The report notes, “As #altcoin madness has ensued, there quietly is a #bullish divergence between #Bitcoin’s accumulating whales and falling price. With whale holdings moving up by ~1K $BTC per day while prices fall, there is reason to believe a strong rebound can occur.”
On the flip side, Bitcoin market dominance has moved closer to 50%, as altcoin prices crashed last week following the high-handed SEC action. For the first time since April 2021, Bitcoin’s (BTC) dominance reached 50%. Bitcoin’s dominance above 50% typically suggests bear market characteristics as investors shift funds into safe haven large-cap coins. The BTC dominance reached above 50% during the bear market of 2018.
Aside from this, on-chain data indicates that Bitcoin miners are transferring coins to exchanges. Over the past week, a considerable number of coins have been transferred to exchanges, resulting in a notable inflow of $70.8 million. This marks the third-largest inflow ever recorded, $30.2 million lower than the highest inflow of $101 million observed during the main bull market in 2021.
However, crypto exchanges like Binance and Coinbase have experienced outflows over the past week. Data from Nansen reveals that over the last week, there has been a significant outflow of multi-chain assets (excluding Bitcoin) from Binance, amounting to $2.376 billion. Binance US saw a net outflow of $124 million, while Coinbase experienced a net outflow of $1.787 billion, and Coinbase Custody recorded a net outflow of $739 million.
In the coming times, Bitcoin is likely to continue trading with a support of $25,000 and an upside resistance of $26,100. Additionally, BTC long-term holders continue to hold their supplies, seemingly indifferent to the recent SEC action. Renowned analyst Michaël van de Poppe tweeted, “Ideally with #Bitcoin, you’d want to see a sweep of the lows. #Bitcoin tested the resistance at $26.1K, but couldn’t break through it. CME gap at $26.5K likely to get filled in the next weeks. Bids at $25K, flip at $26.1K is also a continuation trigger.”
Please note that the presented content may include the personal opinions of the author and is subject to market conditions. Conduct thorough market research before investing in cryptocurrencies, and neither the author nor the publication holds any responsibility for your personal financial loss.
Source: Coingape
