Bitcoin’s on-chain data suggests institutions are ‘deploying capital’ at the expense of ‘hodlers’
By “Sophisticated passive buying” on Bitcoin (BTC) spot exchanges coincides with BTC’s trend of leaving exchanges to cold storage.
According to Data provided by researcher Willy Woo.
Nonetheless, the ability of BTC prices to withstand the selling pressure meant that there was buying pressure from elsewhere. As Cointelegraph reported earlier this week, so-called Bitcoin whales are accumulating BTC at current price levels.
“This selloff is contrasted by exchange data showing sophisticated passive buying on spot exchanges and coin movement to whale-controlled wallets,” Woo wrote, adding:
“This view is supported by the fact that coins are moving away from exchanges into cold storage. Meanwhile, whales holding more than 1,000 BTC ($45 million) are accumulating. institutional money deploys capital.”
Despite the pullback in the price of Bitcoin at the start of the weekend, the increase in whale addresses controlling 1,000 to 10,000 BTC also did not go unnoticed by on-chain data resource Ecoinometrics.
the #Bitcoins whale addresses are buzzing…so while BTC could fall following a stock market crash, there are signs that long-term holders are finding the current price a good entry point. pic.twitter.com/z0xSR5pzml
— ecoinometrics (@ecoinometrics) February 12, 2022
BTC Price Targets
Hunain Naseer, researcher at OKEx, noted Bitcoin would need more time to consolidate given its recent rejections and deviation from its 20-day moving average as shown in the chart below. Nonetheless, recovering $46,000 would likely cause BTC to price test at $50,000 next.
On the other hand, Woo called $33,000 a solid bottom for Bitcoin, given recent selling sentiment among hodlers and speculative investors. As Cointelegraph reported, $40,000 remains a key level to hold while $46,000-$48,000 remains a strong resistance area for bulls.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.