Bitcoin (BTC) Re-accumulation Phase Signals Bullish Market Shift: Bitfinex Report

  • The crypto market appears to be entering a bullish re-accumulation phase, following a period of price consolidation.
  • Recent reports from Bitfinex highlight increased buying activity in Bitcoin (BTC) and Ethereum (ETH) by investors.
  • “Despite recent stable prices, there has been a noticeable increase in new accumulation addresses,” Bitfinex analysts observed.

Discover the latest trends in the crypto market as investors ramp up their buying, signaling the end of the consolidation phase and the onset of a new rally.

Consolidation Phase is Over

In the aftermath of Bitcoin reaching an all-time high of $73,700, long-term holders capitalized by selling portions of their holdings, triggering a price correction to $57,500. This correction phase signaled a market consolidation period.

Throughout the consolidation phase, Bitcoin ETFs experienced significant outflows, averaging $148 million daily. Analysts noted this as a micro-capitulation period, which has since reversed.

The balance is shifting as seller exhaustion ensues, and buying momentum builds. U.S. spot Bitcoin ETFs have recorded consistent buy-side demand, with daily net inflows around $136 million over the past two weeks. Despite significant outflows from Grayscale’s GBTC, buying activity has been notably robust, surpassing the new daily supply of Bitcoin from miners by over four times.

BTC Exchange Reserves Plunge

The trend towards re-accumulation is further evident in the rise of new accumulation addresses and larger transaction sizes for both Bitcoin and Ethereum.

“Examining the accumulation addresses on both the Bitcoin and Ethereum networks, we see a noticeable increase in new accumulation addresses over the past month,” Bitfinex analysts reported, highlighting bullish investor sentiment despite stable asset prices.

The stability in the estimated leverage ratio for these networks underscores a balanced market with minimal extreme risks. Meanwhile, the Bitcoin exchange reserve, which tracks BTC held in exchange wallets, has plummeted. This plunge is typically seen as a bullish indicator because it suggests reduced selling pressure. The decline, which started in February, has intensified as investors anticipate another price surge.

Conclusion

The data indicates that the crypto market’s correction phase is over, with investors moving toward re-accumulation, particularly in Bitcoin and Ethereum. As accumulation addresses increase and exchange reserves decline, the sentiment remains bullish. The market appears poised for a potential rally, offering a promising outlook for the near future.

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