Key Takeaways:
- Bitcoin on-chain metrics signify accumulation.
- Exchange outflow confirms the outlook.
- BTC technicals point to a short-term bearish scenario.
YEREVAN (CoinChapter.com) – Bitcoin (BTC) accumulation is on the rise, despite grim predictions of a sell-off extension.
According to blockchain data and intelligence provider Glassnode, the Bitcoin “tourists” have left the game due to the rising turbulence. However, the purge left BTC whales and shrimp to continue piling on sats.
BTC tourists run on the bank
As previously covered, Glassnode’s July 4 report noted that Q2 had the “worst monthly price performances in history.” The BTC price traded 38% in June, leading many “market tourists” to run on the bank.
The Bitcoin network is approaching a state where almost all speculative entities and market tourists have been completely purged from the asset. […] This suggests little growth in new users, and even a struggle to retain existing ones.
mentioned the report.
Additionally, the network activity has dropped significantly since November heights.
Conversely, the remaining activity “appears to align with high conviction accumulation and self-custody,” says Glassnode. Exchange balances are draining, and Shrimp and Whale balances are increasing “meaningfully.”
Bitcoin whales and shrimp still on the move
According to July 11 statistics, the number of exchange deposits has reached a two-year low. Typically, the outflow of an asset from exchanges signifies the investors’ intention to HODL rather than swap.
Also read: Bitcoin prices suffer as U.S. dollar strength intensifies
Glassnode further underscored the importance of the exchange inflow/outflow metric.
Exchanges remain a centerpiece of Bitcoin market infrastructure, with hundreds of millions, to billions of dollars in Bitcoin value flowing through on-chain each day. The number of exchange deposits and withdrawals, tend to show a high degree of sensitivity and correlation with spot prices.
read the report.
Additionally, another blockchain data provider Santiment noted an “unprecedented level of optimism” in Bitcoin’s social sentiment. The platform reported that BTC’s social volume increased in early July along with a positive vs. negative commentary ratio.
Also read: Bitcoin could offer interim bullish opportunities as BTC holds key support.
Meanwhile, Bitcoin’s technicals leave much desired for the bulls as the bearish Pennant persists.
BTC technicals favor the bears
As CoinChapter reported, BTC/USD exchange rate formed a bearish Pennant that could plunge Bitcoin towards $12,000.
A Bearish Pennant is a technical pattern that appears when the price fluctuates between a falling trendline resistance and rising trendline support. A strong move downside typically follows, breaking below the support and confirming the setup.
The digital asset has not yet confirmed the Pennant, as BTC’s price stood at $20,400 in the Asian-Pacific session on July 11.
Moreover, Bitcoin could drop as much as the height of the previous trend, also called the “flagpole.” Thus, the target price would be approximately $12,000 in the short term, constituting a 40% plunge.
Notably, the bearish setup doesn’t contradict the exchange outflow statistics. Moreover, the recent crypto carnage made Bitcoin’s low price attractive for investors. Thus, the accumulation could result in heightened demand and a subsequent price uptick in the long haul.
However, the short-term prognosis remains bearish, given the negative technicals, expert opinions, and macroeconomic factors.
