According to the most recent Glassnode warning, the number of Bitcoins available has increased to a level not seen in two years.
Bitcoin [BTC] is bearish after failing to maintain bullish momentum above $30,000. Some analysts anticipated such a result and even forecasted a substantial decline. But is a sharp decline below $20,000 likely if these forecasts are accurate?
Here is what we currently understand based on recent data. The most recent Glassnode alert revealed that the quantity of Bitcoin supply that has been active in the previous two to three years has just reached a 2-year high.
This meant that many BTC holders had begun to transfer their currencies. This indicates that many of them may be selling their coins in anticipation of increased selling pressure.
The pessimistic expectations also reflected the market’s current condition. BTC has just completed a pessimistic week marked by massive outflows.
According to the addresses with balances equivalent to or greater than 1000 BTC, whales have been trimming their holdings since mid-April.
In the meantime, futures long liquidations have increased since mid-April, but have decreased since April 21. Why is this essential? As leveraged traders were compelled to sell, the initial surge in liquidations may have fuelled additional sell pressure.
However, the decline in lengthy liquidations suggested that selling pressure may moderate. Since mid-month, BTC exchange inflows have dominated relative to outflows. Moreover, outflows of foreign currency increased, presumably because investors bought the decline. During the past two days, the rate of discharge for both has been decreasing.
Intriguingly, the most recent exchange flow data revealed that BTC exchange outflows marginally exceeded inflows. This indicated that demand was beginning to outweigh supply. Does this, however, reflect the price action?
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