“Passive Duplicate Buying” on spot Bitcoin (BTC) exchanges coincides with the trend of BTC exchanges moving to cold storage.
Modified bitcoin supply shock. Source: Willy Wu
According to the data provided by researcher Willie Wu, the price surge in the bitcoin market over the past two weeks has coincided with an increase in the number of coin holders and speculative investors selling their coins.
However, the price ability of BTC to withstand selling pressure meant that buying pressure was coming from other sources. As Cointelegraph reported earlier this week, so-called bitcoin whales are stockpiling BTC at today’s price level.
“This sale contrasts with exchange data that shows complex passive buying on spot exchanges and the movement of currencies into wallets controlled by whales,” Wu wrote, adding:
This view is confirmed by the fact that the coins leave the exchanges and go to the refrigerated warehouses. Meanwhile, whales are piling up, having collected more than 1,000 BTC ($45 million). This suggests that institutional funds allocate capital.”
Bitcoin exchanges net inflows and deposits to/from whale wallets. Source: Trading View
Despite the bitcoin price drop this weekend, the increase in whale addresses controlling 1,000 to 10,000 BTC did not go unnoticed by the network computing resource Ecoinometrics.
BTC price target
Hanin Nasser, a researcher at OKEx, said that Bitcoin will take longer to consolidate in the future due to its recent divergences and divergences from the 20-day moving average, as shown in the chart below. However, the $46,000 win is likely to test the next $50,000 BTC price.
BTC/USD daily price chart with blue arrows last Friday. Source: OKX / TradingView
On the other hand, Wu described $33,000 as a solid bottom for bitcoin given the recent selling sentiment among speculative traders and investors. As Cointelegraph reported, $40,000 remains a key level to hold, while $46,000-48,000 remains a major resistance area for the bulls.