- The number of entities with at least 1k coins shot up significantly.
- The accumulation was based on expectations of higher inflows into Bitcoin spot ETFs.
Bitcoin [BTC] consolidated around old all-time highs (ATH) at the time of writing, as market participants eagerly awaited a decisive move towards the next big target of $75,000.
No drop in accumulation
The good news was that buying activity remained strong. According to AMBCrypto’s analysis of Santiment’s data, Bitcoin’s accumulation trend score at the time of writing was 0.78, implying that most larger entities were adding to their positions.
Source: Glassnode
The steady accumulation convinced investors that the BTC market was not yet saturated and that there was room for further price gains.
The bullishness was also reflected in the rapidly increasing number of whale addresses, i.e. addresses with at least 1,000 coins. As of March 30, the total number of whale entities stood at 1,617, compared to 1,565 at the same time last month.
Source: Glassnode
The biggest bullish trigger
The optimism was most likely driven by expectations of higher inflows into Bitcoin spot ETFs. These investment vehicles have captured the majority of Bitcoin’s supply since they began trading in early January.
The 10 new spot ETFs have attracted more than $12 billion in inflows since listing, research shows SoSo value facts.
And demand would likely strengthen. Jinzean analyst at cryptocurrency investment firm LD Capital, predicted a strong next week as major funds could shift capital into ETFs due to quarter-end rebalancing.
What do technical indicators tell us?
AMBCrypto analyzed some of BTC’s key technical indicators to gain insight into its next directions.
The Relative Strength Index (RSI) moved closer to 60, and a break through this could provide significant bullish optimism.
Read BTC price forecast for 2024-2025
The On Balance Volume (OBV) reflected the price action at the time of writing, suggesting a balance between bullish and bearish forces.
It seemed likely that the Moving Average Convergence Divergence (MACD) indicator would make a bullish crossover with the signal line. Such an event could increase the chances of Bitcoin rising in the coming days.
Source: trading view