Bitcoin price has rallied above the $64,000 mark. Glassnode, a market intelligence platform, has analyzed this notable increase, which attributes the current price movement to a significant easing of sell-side pressure, particularly from the German government.
Exhaustion of Sell-Side Pressure
According to the on-chain data provided by Glassnode, the recent uptick in Bitcoin’s price is largely due to what they describe as the “complete exhaustion” of sell-side forces, particularly those stemming from the recent governmental actions.
Over the past weeks, the German government has been a big seller, selling off tonnes of Bitcoin, leading to an earlier price decrease at below $54,000.
Nevertheless, despite these sales, the market has not moved lower than that mark, suggesting that this selling was anticipated and factored into prices by the markets. Glassnode’s report highlights that from July 7 to July 10, approximately 39,800 BTC flowed out of labeled wallets, marking a critical phase of market absorption.
Also contributing to the price surge, as highlighted by Glassnode are inflows into Bitcoin exchange-traded funds (ETFs), which have garnered renewed investor attention in recent weeks. Over the last week, ETFs have reported over $1 billion in inflows, suggesting a renewed confidence in Bitcoin among institutional investors.
Glassnode noted in the report:
As prices sold off towards the $54k low, they dropped below the average inflow cost basis of ETF holders, which is currently at $58.2k. In response, the ETFs have seen their first significant tranche of positive interest since early June, with over $1B in total inflows last week alone.
Furthermore, the decline in exchange flows – deposits and withdrawals – remains a significant sign of waning sell-side pressure. Lower exchange flows generally indicate reduced market liquidity and selling, which can provide price support or an upward momentum.
Current exchange volumes have cooled off at about $1.5 billion daily, unlike the higher marks seen in March.
Major Rally for Bitcoin On The Horizon?
As Bitcoin maintains its position above $64,000, showing an 11.5% increase over the past week, the market appears increasingly bullish.
Insights from prominent crypto analyst Rekt Capital indicates that overcoming $65,000 might see Bitcoin enter a new high price cluster zone – one that can push BTC towards as much as $71,500.
The moment Bitcoin breaks $65,000 (blue) is the moment Bitcoin will form a new red cluster of price action
Breaking $65,000 would mean price would be ready to move inside the $65,000-$71,500 region$BTC #Crypto #Bitcoin https://t.co/yxOhRsmVU9 pic.twitter.com/TZMP37ufjx
— Rekt Capital (@rektcapital) July 16, 2024
Additionally, whale activity continues to demonstrate confidence in Bitcoin’s long-term value. Recent transactions highlighted by Lookonchain, such as a notable whale purchasing 245 BTC for nearly $16 million, underscore the strategic accumulation amidst this rally.
Featured image created with DALL-E, Chart from TradingView