Recent onchain data suggests that Bitcoin's wealthiest traders and investors are exhibiting a strong bullish sentiment towards the cryptocurrency, despite potential downside risks stemming from macroeconomic factors. According to Glassnode, Bitcoin whales and sharks have been absorbing BTC at an unprecedented rate, surpassing 300% of the yearly issuance. Concurrently, exchanges are experiencing significant outflows, with the yearly absorption rate by exchanges dropping below -200%, indicating a growing trend towards self-custody and long-term investment strategies.

Notably, larger holders with 100 to over 1,000 BTC are accumulating Bitcoin at a pace exceeding three times the new supply, marking a historic accumulation rate among whales and sharks in Bitcoin's history. This shift in behavior coincides with the increasing adoption of Bitcoin in traditional finance, particularly following the approval of spot Bitcoin ETFs last year. The outcome has resulted in reduced BTC supply on crypto exchanges, reinforcing the bullish conviction among major holders.

Despite market fluctuations, Bitcoin whales holding over 10,000 BTC are continuing to accumulate the cryptocurrency, with Glassnode's Trend Accumulation Score indicating a strong confidence level among these significant holders. In contrast, smaller cohorts that had been distributing earlier in the year, such as the 10-100 BTC and 1-10 BTC groups, are showing signs of slowing down their sell-off, with their scores approaching a neutral zone around 0.5.

Onchain analysts have drawn parallels between the current whale behavior and the pattern observed before Bitcoin's bullish run in 2020, suggesting a potential upward trajectory for the cryptocurrency. Additionally, technical analysis reveals that Bitcoin has recently broken out of a falling wedge pattern, which typically precedes a bullish reversal. Traders are eyeing a potential target price exceeding $100,000 by May, with the breakout point signaling a positive momentum shift.

However, Bitcoin's price is currently facing resistance at its 50-day and 200-day exponential moving averages (EMAs) around $85,300. A bearish rejection from these levels could push the price towards the upper trendline of the wedge near $80,000. Market analysts emphasize the importance of overcoming key resistance levels, such as the $88,804 mark, to solidify a bullish market structure.

In conclusion, the data indicates a strong bullish sentiment among Bitcoin's largest holders, with a structural shift towards accumulation and long-term investment strategies. While market dynamics and technical patterns suggest a potential price surge towards $100,000, investors should exercise caution and conduct thorough

Source: https://cointelegraph.com/news/bitcoin-whales-absorb-300-newly-mined-btc-supply?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound