Bitcoin (BTC) was trading at $65,969 on June 20 at 08:47 a.m. EST after a 1.2% gain in the last 24 hours.
Bitcoin has shown rangebound trading in the last few days, with the price trading between the $63,000 and $65,000 levels. While the inactivity indicates that investors lack interest, on-chain data shows an upward movement could be on the way.
Bitcoin Continues Rangebound Trading
Bitcoin has traded between the $64K to $65K range with no significant price changes. According to Santiment, traders will continue capitulating as they remain fearful or disinterested.
The trend indicators also show that the short-term buying momentum is increasing. The Relative Strength Index (RSI) is 52, showing that BTC is neither overbought nor oversold. However, the RSI is leaning towards a strong position.
The RSI line is also tipping north, showing buyers are steadily entering the market. If the trend continues, BTC will likely continue gaining and possibly break past the current range.
Whales are Accumulating
The shift in buyer behavior could be attributed to the recent development in which MicroStrategy purchased an additional 11,931 BTC valued at $786 million.
MicroStrategy is among the largest BTC holders globally. The recent stash has seen the company’s BTC holdings increase to 226,331 coins worth around $66,000. The company bought its Bitcoin holdings at an average price of $36,798.
The recent purchase by the Bitcoin company confirms that whales are buying. The wallet addresses holding 10 BTC and more have increased to the same level as they were two years ago, according to Santiment.
During this time, the price of Bitcoin has increased by over 226%, indicating that whales are optimistic about the future price trend.
The whale accumulation also shows that these addresses are anticipating future price increases. These wallets hold many coins, allowing them to influence market sentiment.
Nevertheless, the growing whale accumulation can be seen in the Bitcoin Fear and Greed Index at 60, which currently shows a state of greed. BTC will likely sustain the uptrend to higher prices if more accumulations happen.
Bitcoin Exchange Reserves Hit Record Lows
Bitcoin exchange reserves are also another metric that can be used to gauge the price movement. The BTC exchange reserve shows the amount of Bitcoin held by exchanges. This reserve is now at a three-year low.
Data from CryptoQuant shows that there are currently 2,825,703 BTC held by exchanges. The current amount is a significant drop from the 3,039,000 BTC held by exchanges in January 2024.
Such metrics indicate that traders are taking their coins out of exchanges and into their wallets, showing a lack of intention to sell.
The dropping reserves show that demand for Bitcoin remains high despite the recent selling pressure.
After spot Bitcoin exchange-traded funds (ETFs) were approved in the US in January 2024, asset managers like BlackRock started accumulating, adding pressure to BTC’s supply.
The BlackRock iShares Bitcoin Trust currently holds 301,591 BTC valued at over $19 billion, making it the largest single holder of Bitcoin. The iShares Bitcoin Trust is one of the 11 Bitcoin ETFs trading in the US.
However, it is worthwhile to note that spot Bitcoin ETFs have been performing poorly recently. These products continue to record outflows. On June 18, spot Bitcoin ETFs saw outflows of $152 million.
