Bitcoin price has rallied above the $64,000 mark. Glassnode, a market intelligence platform, has 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.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.
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 — Rekt Capital (@rektcapital)
Additionally, whale activity continues to demonstrate confidence in Bitcoin’s long-term value. Recent transactions 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