The upward trend in Bitcoin is developing: the nearest target is the level of $75.2 thousand, while a correction below $60.8 thousand seems unlikely. It is possible to talk about breaking the “bullish” trend only if the quotes go below $46.2 thousand. And if you think in isolation from technical analysis, it is still hard to believe in an imminent collapse in prices. For what purpose should the “whales” merge coins now after only 100% growth from the May highs? These are extremely modest figures for a market where even top-end coins show much larger “x’s” in a shorter period. In other words, after three months of consolidation, bringing BTC to the level of the previous maximum and draining its reserves is the most illogical act.
In addition, there is no hype on the market and the presence of a crowd that can be drained of coins
This can be seen even by the number of queries in Google (NASDAQ:GOOGL). On the graph below, requests on the topic of Ethereum are marked in red, and Bitcoin is marked in blue. The previous peak of interest perfectly coincides with the price peak. Now cryptocurrencies are clearly not on the hype.
There is another rather interesting indicator that can give a hint of the development of events in the foreseeable future – net inflow/BTC outflow to centralized exchanges. The coins are withdrawn from the exchange for long-term storage, and are placed on them in order to fix profits. The lower graph shows that before the strong drawdown of the exchange rate, the indicator took high positive values: at the end of 2017, in May 2020, and so on. Now we are seeing an outflow of coins from the sites.
It is also worth keeping track of what long-term holders are doing. The number of “old” coins being sold is now far from even the May values of 2021, which means experienced investors are going to wait for more suitable prices for sale.