Bitcoin supporters can thank these holders for BTC’s return to $30k
- Bitcoin bulls are back, after dispelling expectations of a significant retracement.
- Low demand (for now) is underpinning the rally as most whales and retail are sitting on their coins.
Bitcoin [BTC] was embarking on what appeared to be a significant retracement earlier this week, but that may not be the case. A quick recovery above $30,000 confirmed that the bulls were nowhere near ready for a break.
How much is 1,10,100 BTC worth today
You may have noticed that BTC and some top altcoins have maintained a bullish bias since the beginning of the year. The same goes for the market conditions this week, especially with BTC going against the bearish expectations. But will it maintain the same bias above the $30,000 area for a while longer?
Bitcoin was trading at $30,272 at press time. Its one-day price chart confirmed that it maintained relative strength above the 50% Relative Strength Index (RSI) level.
Furthermore, a look at the four-hour time frame revealed something even more interesting. The bullish momentum resumed after the price briefly dipped into the oversold zone on April 17.
Source: TradingView
A classic Bitcoin whale move?
BTC’s Money Flow Indicator (MFI) confirmed that liquidity was flowing back into the coin. Whether it will maintain the bullish momentum depends largely on whale activity.
Bitcoin’s supply distribution further confirmed that addresses with between 100 and 10,000 BTC were largely responsible for the bounce. This was because they controlled just over 35% of BTC’s circulating supply. This meant that they had the most influence on BTC’s price action.
Source: Sentiment
The mentioned whale categories have grown slightly in the last two days, thus confirming that they have accumulated. As for BTC’s ability to sustain above $30,000, the current rally was not exactly supported by heavy accumulation.
In fact, exchange flows have slowed, while inflows slightly outweighed outflows according to recent observations.
Source: CryptoQuant
Based on the observations above, one can conclude that today’s momentum is not necessarily heavy enough to support a robust rally. However, the volatile state of the market may allow for a quick shift as investor confidence flows back into the market. It wouldn’t be surprising if BTC buyers pour in again.
Market confidence improved somewhat in the derivatives market. Both BTC open rates and funding rates were slightly up in the last 24 hours, indicating that demand was recovering.
Source: CryptoQuant
There was also a notable increase in short liquidations, which may have partly contributed to the decline. It served as further confirmation that quite a few traders expected prices to continue to slide.
Whales may have bought to take advantage of the momentum from leveraged liquidations. Note that this is just speculation and may not necessarily be the driving factor for the rally.
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On the other hand, Bitcoin bulls were helped by the fact that many Bitcoin holders are long-term biased. Supply in the last active 3-6 months was at a five-month high at press time.
📈 #Bitcoin $BTC Supply Amount Last active 3m-6m (1d MA) just hit a 5-month high of 1,880,438,993 BTC
Previous 5-month high of 1,880,340,270 BTC was observed on April 14, 2023
See calculation: pic.twitter.com/vUdOXvZjqW
— glassnode alerts (@glassnodealerts) 18 April 2023
Furthermore, addresses with at least 0.1 BTC were also on a new ATH according to the latest Glassnode data. In short, more people are buying Bitcoin for the long term.
