Main to remember
What feeds the recent increase in bitcoin prices?
The drop in exchange entries and an aggressive accumulation of whales lead to an ascending momentum of Bitcoin.
What could threaten the Bitcoin rally to a new ATH?
Subouching conditions and potential exhaustion of buyers can trigger volatility and a drop of $ 116,821.
Since he reached a minimum of $ 109K, there are $ 109, Bitcoin (BTC) has experienced a strong upward dynamics, reaching a summit of $ 123,966.
In fact, when writing the editorial’s moment, Bitcoin was negotiated at $ 12,2304, marking an increase of 1.6% in 24 hours and 11.87% on weekly graphics.
But what’s behind Bitcoin’s recent strength?
Bitcoin influx on the binance strikes the historic stockings
According to the cryptotic analyst, Darkfost, the Bitcoin (30DMA) entrances fell to a hollow of all time, sliding below 5.4K BTC.
Source: cryptocurrency
Historically, BTC entries in exchanges have increased when prices bounce, while holders turn to profits.
Thus, this change in behavior signals a total change in market dynamics. In fact, since BTC rebounded, he has not recorded any entries once in eight days.
During this period, Exchange Netflow remained mainly negative, with a clear drop at a monthly rate of -26K BTC on October 3.
Source: cryptocurrency
Since 2020, the Bitcoin Earks for exchanges have generally been around 11,000 BTC, double the current levels.
This sharp decline reflects a significant change in the behavior of investors, with more holders choosing self-cire and long-term storage on exchange deposits.
Consequently, the amount of BTC available for immediate sale has dropped, which reduces the overall market for market sales.
Buyers dominate the market
Ambcrypto observed that the entries in the exchanges, including the binance, decreased, driven by increased accumulation. Thus, most investors entering the market come on the side of demand.
According to cryptocurrency data, for the first time in the last 30 days, Bitcoin Taker CVD has held green for two consecutive days.
Source: cryptocurrency
At the time of the press, this metric was green, indicating that buyers completely dominated the cash market.
Usually, when buyers dominate, they tend to remove their assets from CEX as Binance and store them in private wallets or cold storage.
But who buys?
Ambcrypto analysis of the exchange activity reveals that the whales have moved to an aggressive accumulation.
Chain control data shows a sharp drop in exchange sales, with the change in balance in Megawhales exchanges falling at -54,000 BTC on October 4, and the overall whale sales falling from 80 BTC.
This indicates that whales withdraw large amounts of Bitcoin from exchanges, a strong accumulation signal.
Source: Checkonchain
Such a massive decline suggests that whales withdrew more BTC from the exchanges placed, a clear sign of aggressive accumulation.
Historically, the increase in the purchase pressure of whales preceded an intense pressure on assets, a precursor at higher prices.
Is a new ATH at hand for BTC?
According to Ambcrypto, Bitcoin rallied, approaching his ATH, mainly driven by a reduced sales activity, while the exchange entries tumbled while the whales accumulated.
As a result, its Stochastic RSI climbed to 99, at the time of the press, reaching a territory on a platform. At the same time, the Directional Movement Index (DMI) has increased to 37.
Source: tradingView
As a rule, when these momentum indicators reach such levels, it signals a strong ascending momentum but also warns against imminent volatility.
Consequently, under these market conditions, the upward trend should continue. If the exchange entries remain low supported by the requests of whales, BTC will recover $ 123,700, will test its ATH at $ 124,517 and will target another summit.
However, if the excessive conditions mean the exhaustion of the buyer giving space to the sellers, the downward volatility will see a drop to $ 1,16821.
