Main navigation

Bitcoin Net Accumulation Trend Continues, Here's What It Means

News
Fri, 12/24/2021 - 10:57
article image
Yuri Molchan
Recent analytics data shows that market participants continue to acquire Bitcoin actively, although some whales have been behaving the other way around
Bitcoin Net Accumulation Trend Continues, Here's What It Means
Cover image via stock.adobe.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News
Contents

The CryptoQuant analytics vendor team has shared some recently acquired data on Bitcoin accumulation and sales for today, Dec. 24. Overall, they say, the Bitcoin net accumulation trend continues.

However, some whales have been selling part of their BTC, as per the tweets.

Bitcoin miner inventory reserves soar to six-month high

According to CryptoQuant, miners of the flagship cryptocurrency remain bullish on BTC as their inventory balance at the moment has hit a six-month high. As per the article from one of its analysts, Venturefounder, miners have more Bitcoin now than they did when BTC traded at the all-time high of $69,000.

He adds that miners have been buying more inventory since July this year.

3,700 BTC moved off exchanges

The CryptoQuant report also shows that, at the moment, Bitcoin is being heavily re-accumulated. Recently, approximately 3,700 BTC coins have been shifted from centralized crypto exchanges (based on the 30D Moving Average of the Netflow from/to exchanges).

The author of the report stresses that these levels are similar to the accumulation rate in September and, back then, he adds, this pushed the price up around 70% from the $41,000 low. He wonders if a similar surge will happen now as well.

Related
Jack Dorsey Says Bitcoin Will Replace U.S. Dollar, SHIB Turns Mid-Term Investment, Satoshi-Era BTC Wallet Activated: Crypto News Digest by U.Today

Whales are dumping BTC

More data from CryptoQuant shows that the Exchange Whale Ratio data has hit a year high above 0.65, which means that whales are dumping some of their Bitcoin.

The report says that until the leading crypto breaks the $51,000 level, traders should watch out. After $51,000 is taken, another major resistance will occur in the $56,800 area.

On Dec. 23, Bitcoin got over the $51,000 level, as traders are hoping to see a "Santa Rally." At press time, the biggest cryptocurrency is changing hands at $51,153, as per data provided by CoinMarketCap.

As reported by U.Today on Thursday, Fundstrat managing partner Tom Lee believes that the level of $200,000 is quite achievable for Bitcoin next year after a disappointing 2021. He shared that view during a webinar organized by the Market Rebellion platform for investment and education.

article image
About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.