In the last 30 days, Bitcoin (BTC) whales have accumulated over 65,000 BTC, indicating ongoing buying momentum despite the general market downturn.
Concurrently, the Coinbase premium has been establishing higher lows, even while price trends downward, complicating market sentiment.
An analyst from the CryptoQuant community pointed out on-chain data showing that whales, aside from miners and exchanges, have steadily increased their Bitcoin reserves since February.
This accumulation trend mirrors the prolonged buying pressure seen between November and December.
While the short-term price dynamics remain unstable, the persistent buying from large players indicates that supply is being steadily taken off the market.
This behavior contrasts with intermittent accumulation periods, where purchases are often followed by selling, leading to price volatility. If whales continue their buying spree in the upcoming weeks, it could enhance a sustained bullish market framework.
Nevertheless, the analyst mentioned that this doesn’t guarantee a swift price recovery, as liquidity and macroeconomic factors still sway market activity.
Coinbase premium and market sentiment
Another significant indicator, the Coinbase premium, has shown higher lows even as Bitcoin’s price dips. The Coinbase premium reflects the price difference of BTC between Coinbase and other prominent exchanges, often signifying institutional interest in the US market.
The CryptoQuant community analyst also highlighted that while Bitcoin has consistently tested lower levels within its downward trend, the rising Coinbase premium points to sustained interest from larger investors.
Nonetheless, the market remains in flux, with no clear evidence pointing to a full bearish trend or an upcoming reversal. This scenario has led to conflicting signals, making it difficult for investors to determine short-term price directions.
The analyst advised against making impulsive trading choices based solely on short-term price fluctuations, given the absence of solid trend confirmations. The current market setup does not strongly indicate a bear market, but it also does not provide clear bullish indications.
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