Strong Bitcoin accumulation underway — BTC on-chain data shows

Key Takeaways:

  • On chain data from Glassnode shows increased Bitcoin accumulation.
  • Meanwhile, BTC prices struggles to hold above $47,000.
Bitcoin on-chain data shows an increasing accumulation by whales and shrimps. Image from Pixabay
Bitcoin on-chain data shows an increasing accumulation by whales and shrimps. Image from Pixabay

NEW DELHI (CoinChapter.com) — Large public buys indicate investor interest in Bitcoin (BTC) is returning, states blockchain data and intelligence provider Glassnode’s latest report.

The blockchain research firm saw record accumulation trends in the week ending April 3. The Accumulation Trend Score, a measure of on-chain balance, showed values upwards of 0.62, indicating a general accumulation trend.

Furthermore, Bitcoin’s balance on exchanges also experienced significant outflows. Exchange outflows indicate investors and traders are moving BTC to private wallets for hodling. Bitcoin moved out of exchanges at 96,200 BTC/ month, a rare occurrence for the leading cryptocurrency historically.

Bitcoin net exchange flow. Source: Glassnode
Bitcoin net exchange flow. Source: Glassnode

As a result of the outflows, Bitcoin’s total balance on exchanges has fallen to a multi-year low. Glassnode noted that the Bitcoin exchange balance reached Aug 2018 levels. Additionally, the decline marks an end to the plateaued movement in BTC’s exchange balance that started in Sept 2021.

Bitcoin exchange balance on all exchanges. Source: Glassnode
Bitcoin exchange balance on all exchanges. Source: Glassnode

Glassnode also noted that both shrimps (investors with <1 BTC) and Whales (investors holding >1k BTC) are both driving the accumulation. In addition, the total balance held in accumulation addresses rose by 217,000 BTC over the last four months, with a growth rate of 1,800 BTC/day.

Also Read: Bitcoin holds above $45K while crypto ownership doubles in the U.S. and Asia-Pacific.

Furthermore, Bitcoin shrimps, likely comprised of retail traders, accumulated over 0.579% of BTC’s circulating supply in roughly two months. Glassnode also highlighted that smaller buyers (up to 100 BTC) have been leading the accumulation spree since late Jan.

Bitcoin accumulation trend score. Source: Glassnode
Bitcoin accumulation trend score. Source: Glassnode

The wallets with less than one BTC were the most aggressive, while wallet cohorts with 100-1,000 BTC made the least contribution. However, whale cohorts, such as Luna Foundation Guard, significantly contributed to BTC accumulation over the last two weeks.

Bitcoin Price Chart

Meanwhile, Bitcoin prices struggle to move above the $47,000 price level. Long wicks at both ends of the daily candles highlight the struggle between the bulls and bears.

However, an upcoming golden cross between BTC’s 50-day moving average (yellow wave) and 100-day MA (purple wave) might provide some bullish tailwinds to Bitcoin’s sails. The golden cross is a bullish technical pattern that forms when a short-term MA line crosses above a relatively long-term one.

Bulls could take cues from the golden cross to continue pushing the trend upward. At present, Bitcoin has immediate resistance near $47,000. BTC would need to flip and consolidate above $47,000 before targeting resistance from its 200-day MA (green wave) near $48,300.

Also Read: BTC holds above $47.5K while Grayscale on the outs with SEC over Bitcoin spot ETF.

A move above the 200-day MA could see BTC rise to $50,200 before corrections pull back prices.

BTCUSD daily chart with MACD and a golden cross. Source: Tradingview.com
BTCUSD daily chart with MACD and a golden cross. Source: Tradingview.com

Meanwhile, momentum oscillator MACD is currently bullish for Bitcoin. However, bars on the MACD histogram, which charts the difference between the MACD line (difference between the 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD), are contracting.

Contracting bars indicate that the MACD line might move below its signal line to form a bearish crossover. Traders often consider the technical pattern a sell signal. BTC prices could fall to immediate support from its 20-day MA (red wave) near $45,000.

A sustained sell-off could see prices moving down to $43,500. Finally, BTC’s 50-day (yellow wave) and 100-day (purple wave) MA lines form a support confluence near $41,800.

At the time of writing, BTC was trading at $46,590, up 0.28% on the day.

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Bitcoin, Strong Bitcoin accumulation underway — BTC on-chain data shows

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