On-chain data signals $53,000 the ‘next stop’ for Bitcoin
On-chain data, such as Bitcoin accumulation patterns are indicating that the recent rally is not ending soon. Investors have continued to take their coins of the exchanges as the volume of Bitcoin sent to exchanges drops below the accumulation rate.
Noting clear accumulation patterns rather than sell patterns, market analysts continue to see bullish movements. Onn-chain data analysis is showing that daily transaction volumes are up following the recent price rally.
While we saw the price of Bitcoin dropping below $38,000 on Wednesday, inflows of 11.3K Bitcoin to exchanges seemed to have correlated with this drop in price. However just short after this price dip, 19.3K Bitcoin were taken off the exchanges, showing investors interest in holding rather than selling.
According to reports from CryptoQuant, outflows from exchanges to personal wallets continue to be on the rise. Since Bitcoin’s price crash from its all-time high a few months back, its exchange reserve volume has been decreasing. More coins are leaving the exchanges than coming in, signaling that investors are looking to get their hands on as many coins they can get.
CryptoQuant’s Chief Executive Officer, Ki Young Ju, also noted some big movement of coins, however taking place away from the exchanges.
Someone is buying $BTC a lot.
99% of transactions are happening outside of the exchanges. Possibly OTC deals.
— Ki Young Ju 주기영 (@ki_young_ju) August 3, 2021
The recent trend shows a significant buy pressure in the market. And these buy pressures usually lead to accumulation, which in turn drives the value of the asset higher.
Addressing the current buying pressure and commenting on Bitcoin’s supply and demand, two popular on-chain analytics, Willy Woo and Will Clemente seem to agree and are suggesting a $53,000 price is to be expected shortly.
— Will Clemente (@WClementeIII) August 8, 2021
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Author: Peter Siu