- Bitcoin bulls were making another attempt at taking over from the bears.
- Whale accumulation resumed after weeks of outflows.
Bitcoin [BTC] enthusiasts will be glad to know that at press time, bulls were once again fighting for dominance after prices fell towards short-term support. Multiple observations already indicated that a mid-week bullish bounce back might be on the cards.
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Let’s kick off by assessing the latest on-chain data. As per Glassnode, 9 May’s daily on-chain exchange flows and the net outflows outweighed the inflows. In other words, more Bitcoin is flowing out of exchanges than the amount flowing into exchanges.
📊 Daily On-Chain Exchange Flow#Bitcoin $BTC
➡️ $571.3M in
⬅️ $696.3M out
📉 Net flow: -$125.0M#Ethereum $ETH
➡️ $552.1M in
⬅️ $759.4M out
📉 Net flow: -$207.3M#Tether (ERC20) $USDT
➡️ $807.8M in
⬅️ $828.9M out
📉 Net flow: -$21.1Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) May 9, 2023
Bitcoin’s exchange flow data demonstrated a similar outcome, confirming a build-up of buying pressure. The latest data revealed that Bitcoin exchange outflow volume outweighed exchange inflow volume by slightly over 4000 BTC.
Source: Glassnode
Are these exchange flows enough to trigger a price pivot? Well, the answer will largely be determined by whale activity. Strong demand from whales will certainly influence market direction.
As such, it’s important to look into what whales are doing.
Bitcoin whales make a splash
Bitcoin addresses holding at least 1,000 BTC have been accumulating for the last four days. This confirmed that the recent exchange outflows were backed by favorable whale activity. On the other hand, the Bitcoin Purpose ETF Holdings continued to sell.
Source: Glassnode
The reason for the ETF outflows remains unclear, but it might be related to the uncertain regulatory environment in the U.S. Many crypto companies are exploring alternative options such as shifting their operations abroad and this might be discouraging institutional investors.
Retail demand is also leaning on the bullish side. Last week, we saw a decline in daily active addresses to the lowest level during Monday’s trading session. However, the last 24 hours were characterized by a surge in the number of active addresses. This may indicate that the market was regaining some confidence at the time of writing.
Source: Santiment
The combination of renewed retail activity backed by healthy demand from whales may lend favor to the bulls. However, these factors have not triggered a pivot in BTC’s price action, at least not yet. This is likely because there is still significant sell pressure in the market.
How much are 1,10,100 BTCs worth today?
A look at Bitcoin’s price action reveals that bullish demand was manifesting 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 win for the bulls. The eventual outcome will ultimately depend on the level of buy or sell pressure prevailing in the market.