404,448 Bitcoins Moved to Permanent Addresses – Bull Run on the Way?
Contributor
- Massive accumulation of Bitcoin by institutions while retail investors sell in panic.
- Bearish reversal pattern with USDT dominance triggers Bitcoin rally.
404,448 Bitcoin [BTC] worth $23 billion have been moved to permanent holders’ addresses in the past 30 days, suggesting significant accumulation.
Retail investors distracted by worries like the German government sell-off or Mt. Gox’s troubles may regret not buying when prices dip.
This missed opportunity is highlighted as institutions are believed to have bought during the recent market decline.
BTC weekly chart reflects 2019/20 BTC cycle
For weeks, there have been warnings that investors and traders are getting too optimistic and ignoring signs on the BTC weekly chart.
This year’s chart is similar to the 2019-20 cycle, showing a double bottom, a peak with a double top, a break, a trough and then a rally. Currently, BTC is in a correction phase and may be having its last drop before another rally. This phase has attracted significant institutional investment, with many Bitcoins being moved to addresses of permanent holders. Are we witnessing history repeating itself?
USDT dominance falls, Bitcoin rises
When USDT dominance falls, crypto prices often rise. This was evident on “Crypto Black Monday” when $1.7 billion worth of assets were liquidated.
USDT dominance tested key resistance and was rejected , indicating possible change in market direction.
The 50-day exponential moving average was also retested hence confirming trend reversal .This event highlighted high volatility of crypto market and potential risks associated.
Volume weighted Bitcoin funding rate vs institutional buying shows divergence
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While falling bitcoin funding rate indicates bearish markets,strong institutial buying that exceeds retail sales can indicate possible reversal.This market correction could last between 4-8 weeks.Then possible recovery could occur in Q3 2024.
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