Whales are hoarding Bitcoin. An uptrend could follow

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Key Takeaways Bitcoin appears to be preparing to resume its uptrend. Bitcoin whales have been accumulating tokens during the recent downturn. Meanwhile, air resistance barriers are also weakening. Share this article

Recent activity on the Bitcoin network suggests that the asset may have bottomed out in the market after the large losses it recently suffered. Yet, there is another supply barrier that BTC must cross in order for prices to rise further.

Bitcoin gears up for higher highs

Bitcoin could be ready for a bullish move.

The number one crypto has fallen more than 20% in market value in recent weeks, but several on-chain measures suggest a bullish momentum is underway.

The Santiment behavior analysis platform has recorded a significant increase in the number of whales over the past week. While Bitcoin failed to overcome its resistance levels of $ 60,000, large investors piled up tokens.

On-chain data shows that addresses holding 100 to 10,000 BTC added around 59,000 BTC to their positions, worth almost $ 3.5 billion.

Source: Santiment

The increased buying pressure seen behind Bitcoin over the past week coincides with a dramatic drop in the total number of coins held on the exchanges. Around 16,000 BTC have been withdrawn from trading platforms since November 18. This is the first time in more than three years that the stock market balance has fallen below 2.43 million BTC.

Source: Glassnode

The declining supply of Bitcoin on known cryptocurrency exchange wallets along with increasing buying pressure paints a positive picture of future asset price growth. As the number of BTC available for sale decreases, the downside potential becomes limited, creating the optimal conditions for a supply shock.

Channel analyst Will Clemente claims that such network dynamics have led to the development of a “clear bullish divergence between the supply of BTC going into strong hands and the price.”

Still, Bitcoin must overcome a substantial supply barrier in order to resume its uptrend. IntoTheBlock’s IOMAP model shows that over 1.18 million addresses have already purchased over 555,000 BTC between $ 60,330 and $ 62,090.

A decisive close above this resistance level could help Bitcoin reach $ 70,000.

Source: IntoTheBlock

It should be noted that Bitcoin is trading above a significant demand barrier which may be able to absorb any additional selling pressure. Over 3.41 million addresses have acquired nearly 2 million BTC between $ 55,000 and $ 58,500. Holders within this price pocket may attempt to prevent their investments from going out of the money by accumulating more coins.

Disclosure: At the time of writing, the author of this feature owned BTC and ETH.

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