Bitcoin price continues its stagnant trend around the $40500 to $41000 levels, probably inviting the masses to quickly jump in before it is too late. Despite multiple factors that do foresee a significant drop in the BTC price, some do manifest a strong upswing could be imminent.
BTC Flows Heavily Out of Exchanges
Despite the price remaining more or less stable within narrow ranges, the exchange reserves continue to dry up. The exchange reserves rose along with the BTC price since its inception. But the trend reversed during the mid of 2020, where-in the reserves began to deplete as the price rose high. And currently, the reserves have bottomed to a 4-year lowest level which indicates the accumulating and holding behaviour of the traders or whales.
Bitcoin Illiquid Supply Going Parabolic
Bitcoin’s Illiquid supply has witnessed significant growth ever since the third-halving event was successfully accomplished. The supply rose from 902 BTC to 1694 BTC per day, outpacing the circulating supply for the first time in Bitcoin’s history. The Illiquid supply is nothing but the entities who hold 75% of BTC they purchase while high-liquid is 25% and liquid supply is in between. Therefore, the BTC illiquid supply is going parabolic since the most popular May 2021 market crash.
Whale Accumulation Reaching the Peak
As the BTC price slipped the levels below $40,000, the Whales started accumulating hard, indicating a huge upward trajectory incoming soon. As per some reports the third-largest whale has been accumulating 2822 BTC in the last 7 days and nearly 6300 BTC in the entire month. Another whale bought nearly 500 BTC worth more than $20 million as per the analytic platform, The Whale.
Collectively, multiple other indicators do point to a huge bullish swing incoming for the asset. Some of them include the chart patterns as the Bitcoin (BTC) price maintains a lower trend line significantly. And the other technicals suggest a strong trend reversal after a brief consolidation. Therefore, the upcoming price trend may be very interesting as the crypto space may witness yet another 2021-line bull run very soon.
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Source: https://coinpedia.org/bitcoin/top-catalyst-which-can-uplift-the-bitcoinbtc-price-above-the-crucial-44000-levels/