Recent chain data shows that Bitcoin (BTC) whales have moved from a long-term distribution period to an updated accumulation, and that the stable supply of binance is on the rise. both The metric suggests good momentum for BTC.
According to analyst Darkfost, the whales have reduced their holdings for more than a month, indicating the longest sustained decline in net accumulation over the past year.
However, this trend has reversed, with the whales again increasing their holdings, bringing the monthly percentage change back to positive territory. Historically, such accumulation stage has often preceded bullish market movements.
DarkFost emphasized that continuing whale accumulation could boost market liquidity and contribute to the momentum of Bitcoin’s rising price. Large investors usually have a major impact on price action.
Their purchasing activities demonstrate confidence in the market situation and can cause wider emotional changes among retail investors.
Binance Stablecoin Remerves
Alongside the whale accumulation, Binance recorded the highest Stablecoin reserves ever, exceeding $31.3 billion.
DarkFost says Binance, the largest crypto exchange by volume, often serves as a key liquidity hub, and Stablecoin reserves key metrics for potential market movements.
The increase in Stablecoin reserves in Binance suggests two major factors. First, investors are potentially injecting liquidity into exchanges in preparation for market entry. This inflow of capital demonstrates Binance’s stability and confidence in the broader crypto market situation.
Second, Binance itself is expanding its Stablecoin reserves in response to increased demand, reflecting an increase in transactional activity on the platform.
The period of rising Binance’s Stablecoin reserve is historically consistent or ahead of the rising trend in Bitcoin prices. Stablecoins act as an on-ramp for crypto investments and provide immediate liquidity for traders to enter positions.
Current accumulation trends and increased liquidity present a historically favorable market environment for potential price increases.
You need to confirm
Despite the favorable setup presented by DarkFost’s shared on-chain data, Short-Term Holders (STH) are aware that price levels are converging, indicating that the average input prices for Bitcoin buyers in recent years are becoming more uniform.
According to Yonsei Dent, another crypto community analyst, this suggests a stagnant supply and demand in the market, which has led to a clear pricing direction.
At the same time, the 60 and 200 moving averages of STH realised prices are also tightened with a similar pattern to the one observed in May 2024.
Yonsei Dent rated that the long term period of price consolidation could be repeated if no strong demand catalysts appeared.
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