Bitcoin sale is absorbed by long-term supports
An analysis of the on-chain processes in the Bitcoin network was shared on latest issue of “The Pomp Letter”. As stated by William Clemente, long-term holders of the main cryptocurrency have notably increased their positions this week. The illiquid supply of BTCs has been growing steadily since the end of May.
[NEW POST] Strong Hands Are Aggressively Accumulating Bitcoin@WClementeIII breaks down this week’s on-chain metrics, which unequivocally show that the market’s most experienced holders are continuing to accumulate at an impressive rate. https://t.co/JlJYJe0L2t
— Pomp 🌪 (@APompliano) June 25, 2021
“Strong hands are aggressively accumulating Bitcoin
@Wclemeiiii It breaks this week’s on-chain metrics, which unequivocally show that the most experienced market holders continue to accumulate at an impressive rate.”
That is, long-term holders added 120,739 BTCs while “young” investors reduced their holdings by 97,333 BTCs.
Similar processes were observed in 2013 and 2016. According to the newsletter, this is how savvy bitcoiners are “laying the ground” for the next phase of the bull run.
“Big money” is buying this dip
At the same time, the number of most influential Bitcoin holders (‘whales “,” retail wallets “with 1,000+ BTC) grew.
The number of stablecoins available on centralized exchanges has also reached all-time highs, as reported by U.Today recently. Potentially, this indicates increased interest in the purchase.
Meanwhile, some miners are selling their wealth, even in the midst of the ongoing “dive”. This is likely to be attributed to China’s heightened crackdown on cryptocurrencies.
The analyst added that processes registered on “Over-the-Counter” platforms should also be interpreted as bullish signals.