The accumulation of Bitcoin continues. Traders are withdrawing 2000 BTC from the exchanges every day. For Glassnode, the price stagnation could be the calm before the bull run.
The price of Bitcoin has been oscillating constantly for several weeks now. The volatility remains moderate though. Fluctuations in the price of the cryptocurrency are moving in a range between $30,000 and $35,000.
On a downward trend, BTC was quoted on July 14 at nearly $32,000. Bitcoin is therefore struggling to break out of this narrow corridor and in particular to break out of the $35,000 resistance. Still, indicators suggest a potential rise in the crypto-asset, Glassnode believes.
For its researchers, it could even be the calm before the storm. It could be time for investors. The volume of activity in the crypto is back to the level it was last October. Long before the Bitcoin bull-run, then.
“The week opened at a high of $35,128 and traded as low as $32,227. It’s starting to feel like the calm before the storm, as quiet, discrete activity is appearing in both the cash market, derivatives, and blockchain metrics,” Glassnode suggests.
And the indicator that crypto experts are probably watching most closely is the accumulation of BTC. This trend has been underway for a few weeks now, especially among Bitcoin whales.
It can be seen in the withdrawal of BTC from centralized exchanges such as Coinbase and Binance. According to Glassnode, an average of 2,000 bitcoins are withdrawn from CEXs every day. That’s the equivalent of $66 million.
BTC reserves at an all-time low, just like ATH
According to “The Week On-Chain” report, Bitcoin reserves on exchanges have fallen back to their April levels. This was the time when BTC was at its all-time high of about $65,000.
At that time, bitcoins were leaving the reserves of crypto exchanges to be accumulated by institutions or to feed the Grayscale GBTC Trust, among others. The trend reversal was brutal. Bitcoin came back to the exchanges in droves, only to be liquidated in a hurry.
Now, therefore, the net transfer volume is again negative due to the increasing outflow of Bitcoin from the exchanges.
There are other encouraging signs that Bitcoin’s price may be on the rise. For example, deposits to exchanges are accounting for a decreasing share of transaction fees. Withdrawal fees, on the other hand, are increasing. Moreover, this situation coincides with an increase in flows to the DeFi protocols. DeFi Llama notes a 21% increase in TVL since June 26.