Coinbase whales behind the latest Bitcoin bull run towards $47K, data suggests

• Smart money finding its way into the Bitcoin market
• Significant institutional accumulation through Coinbase Pro noticed
• BTC/USD spot pair looks primed to reclaim the $50,000 -60,000 resistance range

JAIPUR (Coinchapter.com) – Institutional believers in Bitcoin’s long-term prospects were found to engage in heavy accumulation through Coinbase Pro, data from CryptoQuant shows.

“Coinbase whales” scooped up the top cryptocurrency in large numbers during January 2021 as well.

“In addition, “funding rate” of Coinbase Pro for institution shows us clear signal that they were acculmulating it as same as 2021 Jan before starting bull-run to 64K. (Smart Money)”

wrote CryptoQuant analyst Minkyu Woo

Such massive Bitcoin buying laid the groundwork for the run-up to $65,000 earlier this year. A quick comparison with the current Coinbase whale buying spike reflects how a similar scenario is brewing up.

Related: The 4th Largest Bitcoin Whale Buying More BTC Signals Additional Rebound to $42K

Bitcoin’s Road To $60,000 Will Be A Cakewalk

Bitcoin shot up by 37% from July 20’s bottom at $29,232 July 20 to $46,767 recorded in the ongoing trading session. The current spike in Bitcoin scooping by Coinbase whales profoundly affected the flagship’s crypto asset’s market momentum.

So much that there doesn’t seem to be any significant price barriers up until $47,000.

“Based on BTC 3 Days Chart, It shows us clearly that between 44K ~ 47K there are not much resistances… “

And beyond if Bitcoin prices manage to hold firmly above the 21-week moving average (MA). Analyst Mikyu Woo whose data provides the basis for this story, calls for a rally to $50,000 – 60,000 “very shortly.

“…i think as soon as BTC is able to stay above 21 (W) MA, BTC will go to 50K++ 60K++ very shortly.”

Not Just The Coinbase Whales

But Bitcoin would require a substantial capital infusion to scale up to the $50k-60k range, beyond the Coinbase whales contributing. But, according to Glassnode, that isn’t a problem.

The Zug-based crypto data analytics firm noted a significant rise in the share of “large Bitcoin transactions” year-over-year. Transactions north of $1 million involving the benchmark crypto-asset have grown from 30% in 2020 to 65% in 2021—especially the $1 million to $10 million transaction batch.

Related: German institutional investors can now invest in bitcoin and crypto markets

“As the market traded down to the lows of $29k in late July, the $1M to $10M transaction group spiked markedly, increasing dominance by 20%. This week, the dominance of $10M+ volume followed through with a spike of 20% dominance supporting the price rally.”

The Week On-chain (Week 32, 2021), August 9, 2021

Which in turn is good for BTC price.

“Given the lifespan analysis above suggests older coins have been largely dormant of late, this suggests that these large size transactions are more likely to be accumulators than sellers and is again, fairly constructive for price.”

This as Glassnode observes, points to the rising adoption of the Bitcoin network across institutional heavyweights across the world. Especially in a scenario when small transactions are taking the backseat.

 “Transactions of less than $1M in size have declined from 70% to around 30%-40% dominance. These two charts clearly demonstrate a new era of institutional and high net worth capital is flowing through the Bitcoin network since 2020.”

noted Glassnode analysts

Factors That Institutions May Have Considered

The renewed interest amongst the institutional crowd in Bitcoin comes on the back of multiple pointers. For starters, the deep-pocketed group carefully assessed the macro-economic scenario. The US labor market showed promising signs of growth with a bumper July jobs report.

Related: Bitcoin breakout exceeds over $43K after positive US jobs data

The massive addition of payrolls passed significant hints regarding the overall growth of the American economy. But wasn’t sufficient for the Federal Reserve to close the taps on unhindered liquidity supply. In his recent press conference, the US central bank’s chairman, Jerome Powell, stated that they expect to keep their $120bn a month asset purchasing program and near-zero interest rates intact until they see substantial growth in the labor market.

The above strong upside move in jobs data could have deterred investors from raising bets in riskier assets. But, on the contrary, market participants entered long positions in Bitcoin en-masse. Part of this also attributes to the uncertainties spawned due to sporadic delta variant transmissions.

Bitcoin, as it happens, became the go-to destination to preserve the value of invested wealth.