Bitcoin and Ethereum Re-Accumulation Phase Signals Bullish Trend, Say Bitfinex Analysts 📈
Bitfinex analysts have detected on-chain dynamics suggesting that the crypto market has exited its correction phase and entered a re-accumulation phase, indicating a forthcoming rally for digital assets.
Crypto Investors Shift Towards Re-Accumulation
- Bitcoin and Ether purchases increase consistently, pointing towards a market shift from consolidation to re-accumulation.
- Bitcoin ETFs and average transaction sizes of Bitcoin and Ethereum reflect this change.
End of Consolidation Phase 📉
After Bitcoin’s peak at $73,700 in mid-March, long-term holders started selling to realize profits, leading to a correction phase with prices dropping to $57,500.
- Bitcoin ETFs experienced significant outflows during consolidation.
- However, with BTC sellers exhausted, buying has increased, with U.S. spot Bitcoin ETFs showing strong demand.
- Even though Grayscale’s GBTC saw outflows, there has been a streak of inflows, surpassing daily supply from miners.
Decline in BTC Exchange Reserves 📊
The re-accumulation trend is evident through new accumulation addresses and the average transaction size of Bitcoin and Ethereum, showing bullish investor sentiment.
“Increase in new accumulation addresses despite stable prices indicates strong investor sentiment,” Bitfinex noted.
- Steady leverage ratios on these networks suggest a balanced market with minimal risks.
- Bitcoin exchange reserves have decreased, signaling reduced BTC supply and anticipation of a price surge.
Hot Take: Re-Accumulation Phase Sets Stage for Crypto Rally 🚀
As Bitfinex analysts observe a transition from consolidation to re-accumulation in the crypto market, signs point toward a bullish trend for Bitcoin and Ethereum, with investor sentiment remaining positive amidst stable prices.
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