Bitcoin whales, defined as entities holding at least 1,000 BTC, have accumulated a staggering 84,000 bitcoins in July, totaling $5 billion. This marks the highest monthly increase since 2014 and often indicates a major market shift. The unprecedented buying activity by whales suggests that Bitcoin might be on the verge of a substantial move, as historically, such significant accumulation has often preceded major market changes.
Bitcoin On-Chain Indicators Signal a Solid Bull Market
Most Bitcoin indicators, including the bull-bear market cycle indicator, have returned to showing a bull market after briefly signaling a downturn. Bitcoin's price was discounted for just three days, and given this data, the bull market seems solid. The market is expected to bounce back in two weeks.
BTC Futures and Spot Trading Volume Hits All-Time High
When Bitcoin fell to $50,000, futures trading volume soared to a record $154 billion, and spot trading volume reached $83 billion, the second-highest ever. This dramatic drop was followed by a strong recovery, with Bitcoin's price increasing by over 23% from its weekly low.
ETF Inflows Surge as Bitcoin Dips Near $50,000
Despite Bitcoin's fluctuations, BlackRock's Bitcoin ETF has only experienced one day of outflows since its January launch, with over $20 billion locked. Recently, BTC ETFs saw $194 million in inflows after five days of outflows. Notably, every time BTC drops near $50,000, ETF inflows surge significantly, suggesting that major investors are buying the dip.
Bitcoin Absorbs Sell-Side Liquidity
Bitcoin has shown an interesting pattern around the 5th of the month. In both July and August, it dropped sharply for five days at the start of the month but then experienced significant rallies. While this might be a coincidence, it's notable that BTC has likely absorbed sell-side liquidity, which could signal a potential rally. Analysts generally view the $70,000 peak as a short-term high.
