- Bitcoin bulls made another attempt to take over from the bears.
- Whale accumulation resumed after weeks of outflow.
Bitcoin [BTC] enthusiasts will be pleased to learn that at press time, bulls were once again battling for dominance after prices plummeted to near-term support. Several observations already indicated that a bullish bounce back could be imminent midway through the week.
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Let’s start by reviewing the latest on-chain data. According to Glassnode, May 9 daily on-chain exchange flows and net outflows exceeded inflows. In other words, more Bitcoin flows out of the exchanges than the amount flowing into the exchanges.
Daily on-chain exchange flow#Bitcoin $BTC
$571.3 million in
$696.3 million out
Net Flow:- $125.0 million#Ethereum $ETH
— glassnode alerts (@glassnodealerts) May 9, 2023
Bitcoin exchange flow data showed a similar result, confirming a build-up of buying pressure. The latest data showed that the Bitcoin exchange’s outflow volume exceeded the exchange’s inflow volume by just over 4,000 BTC.
Source: Glassnode
Are these exchange flows enough to trigger a price pivot? Well, the answer will be largely determined by whale activity. The strong demand from whales will certainly influence the direction of the market.
That’s why it’s important to look at what whales do.
Bitcoin whales impress
Bitcoin addresses containing at least 1,000 BTC have accumulated over the past four days. This confirmed that recent currency outflows were supported by favorable whaling activities. On the other hand, the Bitcoin Purpose ETF Holdings continued to sell.
Source: Glassnode
The reason for the outflow of ETFs remains unclear, but it may be related to the uncertain regulatory environment in the US. Many crypto companies are exploring alternative options such as moving their operations abroad and this could discourage institutional investors.
Retail demand is also leaning on the upside. Last week, during Monday’s trading session, we saw the number of daily active addresses fall to its lowest level. However, the past 24 hours have been marked by an increase in the number of active addresses. This may indicate that the market was starting to regain some confidence at the time of writing.
Source: Sentiment
The combination of renewed retail activity supported by healthy demand from whales could benefit the bulls. However, these factors have not caused a pivot in BTC’s price action, at least not yet. This is probably because there is still significant selling pressure in the market.
How much are 1,10,100 BTC worth today?
A look at Bitcoin’s price action reveals that rising demand manifested near a short-term support near the $27,000 price range.
Source: TradingView
While the above analysis reveals the ongoing battle for dominance between the bulls and the bears, it does not necessarily guarantee a victory for the bulls. The final result will ultimately depend on the degree of buying or selling pressure prevailing in the market.
