Bitcoin’s consolidation between the $ 30,000 and $ 40,000 area continues, while the leading cryptocurrency hovered around $ 36.8K during intraday trading, according to CoinMarketCap.
On-chain analyst William Clemente III revealed that 13.38% of Bitcoin’s circulating supply which stands at 18.73 million BTC has moved between the $ 31K and $ 40K range. He explained:
“13.38% of the Bitcoin money supply has now moved between $ 31K and $ 40K. Lots of distribution at 35K-36K, I wouldn’t want to turn that into resistance. “
The analyst, however, warned of this major supply shift towards resistance, which could jeopardize Bitcoin’s bullish rally.
Chris Weston, head of research at Melbourne-based broker Pepperstone Financial Pty, recently claimed that BTC should trade above $ 40K for the bulls to feel like they are out of vulnerability.
Percentage of Bitcoin Supply in Profit Hit a 13-Month Low
According to chain metric provider Glassnode:
“Bitcoin Supply Percentage in Profit (7d MA) just hit a 13-month low of 72.140%.”
The recent market crash, which sent BTC plummeting from an all-time high of $ 64.8K to lows of $ 30K, wiped out the gains of many investors and miners were not spared either.
The net wallet flows of Bitcoin miners were reportedly turning increasingly negative.
This downtrend in the BTC market will also make the record for the second quarter of 2021 negative, as Skew acknowledged. The crypto data provider noted:
“Bitcoin is on track for its first quarter down from the first quarter of 2020.”
Meanwhile, institutional demand for Bitcoin in the US had dried up because US-based crypto exchange Coinbase was seeing more inflows.
According to a recent weekly report from digital asset firm CoinShares, institutional investors continued to reduce their long positions in BTC. Net outflow hit a record $ 141.4 million last week.
Furthermore, whale holdings of over 1,000 BTC had declined since February. So it remains to be seen if BTC will attract more institutional investors to fuel an upward move.
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