Bitcoin on-chain data hints at institutions 'deploying capital' at expense of 'hodlers'

"Sophisticated passive buying" on the spot exchanges is related to the trend of leaving exchanges to cold storage.

The supply shock was adjusted. The source is Willy Woo.

According to data provided by researcher, a rise in hodlers and speculative investors selling their coins was the cause of the price recovery in the last two weeks.

There was buying pressure coming from other places because of the price resilience of BTC. The cointelegraph reported earlier this week that so-called Bitcoin whales are accumulating at current price levels.

"This selling is contrasted by exchange data showing sophisticated passive buying on spot exchanges and movement of coins to whale-controlled wallets," wrote Woo.

Coins moving away from exchanges to cold storage support this view. This shows how institutional money deploys capital.

Net flows and deposits are made into whale wallet. The Trading View is a source.

The rise in whale addresses controlling 1,000 to 10,000 BTC has not gone unnoticed by Ecoinometrics.

There are signs long term holders find the current price to be a good entry point, even though the #Bitcoin whales addresses are on a buying spree.
>
February 12, 2022, ecoinometrics

The price targets for BTC.

The chart below shows the recent rejections and deviation from its 20-day moving average, as shown by Hunain Naseer, a researcher at OKEx. It's likely that the price will test $50,000 next.

There are blue arrows on the daily price chart. OKX/Trading View

Woo said that the recent selling sentiment among hodlers and speculative investors meant that the price was $33,000 a solid bottom. $40,000 remains a key level to hold while $46,000-$48,000 is a heavy resistance area for the bulls.
The views and opinions expressed here are those of the author and do not represent the views of cointelegraph.com. When making a decision, you should conduct your own research.

Source: cointelegraph.com