An analyst has explained why it could be the time to get ready for a new Bitcoin bull run, based on the pattern developing in this on-chain metric. Bitcoin US To The Rest Reserve Ratio Has Seen A Reversal Recently In a CryptoQuant Quicktake post, an analyst discussed the recent trend in the BTC US to The Rest Reserve Ratio. This indicator tells us, as its name suggests, the ratio between the total Bitcoin reserves of the US-based centralized platforms and that of the global ones. Platforms here refer to not just the exchanges, but also other entities like banks and funds. When the value of this metric is rising, it means the asset is currently moving from offshore platforms to American ones. Such a trend can be a sign of demand from the US-based investors. On the other hand, the indicator going down suggests the foreign platforms have higher demand for BTC right now as the American exchanges are losing dominance to them. Related Reading: Bitcoin Bull Run Not Over Yet? This Ratio Has Just Seen A Golden Cross Now, here is a chart that shows the trend in the 100-day Exponential Moving Average (EMA) of the Bitcoin US to The Reserve Ratio over the past year and a half: As displayed in the above graph, the 100-day EMA Bitcoin US to The Rest Reserve Ratio had been declining earlier in the year, but during the past couple of months, its value has bottomed out and shown a reversal to the upside. This would mean that a transfer of BTC is now occurring from global platforms to the US-based ones. In the chart, the quant has marked the last instance of the indicator displaying this trend. It would appear that the previous turnaround in the metric had occurred in the last quarter of 2023 and had accompanied a BTC rally that would eventually take the asset to a new all-time high (ATH). The sharpest part of this increase in the indicator had come in the first quarter of 2024. The reason behind this acceleration had been the introduction of the spot exchange-traded funds (ETFs) in the US, which had quickly gained popularity among the investors. Related Reading: Dogecoin Surges 16%, But Here’s What DOGE ‘Risk Indicator’ Says About Rally From the graph, it’s also visible, though, that a while after the price had reached the ATH, the metric had topped out and witnessed a reversal in direction. Thus, the spot ETFs couldn’t keep up the same level of interest. The analyst notes that BTC’s sustained consolidation this year can be traced back to this decrease in the reserve of the US-based platforms. Since the indicator has once again shown a turnaround recently, it’s possible that Bitcoin could see the return of bullish momentum, if the previous pattern is to go by. BTC Price Following a 2% jump during the last 24 hours, Bitcoin has returned back to the $68,700 level. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
Here’s what on-chain data says regarding which cryptocurrency exchanges are currently the preferred platform for the Bitcoin whales. Bitcoin Exchanges Ranked According To Whale Ratios In a new post on X, CryptoQuant community manager Maartunn discussed which exchange is currently number one in the Bitcoin Exchange Whale Ratio. Related Reading: Dogecoin Jumps 10% Just As […]
The German and U.S. governments make strategic moves with significant Bitcoin and Ethereum transfers, drawing market attention.
Bitcoin whales have been very active in the past few days as the crypto continues to trade below $68,000. Notably, on-chain data has shown a trend of accumulation among Bitcoin whales, with large bouts of the cryptocurrency leaving crypto exchanges into private wallets. These massive transfers appear to have piqued the interest of a few investors who are keeping a watchful eye, as this accumulation pattern points to a price increase up ahead. According to various posts by whale transaction tracker Whale Alerts, Bitcoin whales have recently transferred $2.3 billion worth of BTC in a span of 24 hours, indicating their bullish sentiment. Similarly, crypto analyst Ali Martinez recently revealed that over 25,000 BTC worth approximately $1.60 billion had been transferred into accumulation addresses. Bitcoin Whale Accumulation Signal Price Surge Ahead Bitcoin has largely traded below $69,000 since March 15, struggling to regain the momentum that saw it shooting past $70,000 earlier in the month. Interestingly, Bitcoin fell to as low as $61,766 last week, representing a 16% decline from its all-time high. Related Reading: Dogecoin Whales Go On Massive Buying Spree, Here’s How Much They’ve Bought Meanwhile, Spot Bitcoin ETFs saw consistent outflows throughout the week which was spearheaded by Grayscale’s GBTC and weak inflows into BlackRock’s IBIT and Fidelity’s FBTC. This decline became much of a concern for investors as it signaled the bullish sentiment surrounding BTC might finally be coming to an end. However, on-chain data is now telling a different tale of a strong bullish sentiment from Bitcoin whales. Data from Whale Alerts show large amounts of BTC leaving crypto exchanges, one of which was a transfer of 8,136 BTC worth $517 million from Coinbase into a new private wallet. Shortly after, 8,172 BTC worth $519 million were transferred from Coinbase into another new private wallet. Interestingly, the different alerts from the whale tracker added up to $2.3 billion worth of BTC to and from crypto exchanges on March 22. Analyst Ali Martinez noted that these transfers added up to $1.6 billion being added into accumulation addresses, the largest inflow so far this year. Yesterday, over 25,000 #Bitcoin, valued at approximately $1.60 billion, were transferred to accumulation addresses, marking the highest inflow to these $BTC wallets so far this year! pic.twitter.com/mAIHkG9ROC — Ali (@ali_charts) March 23, 2024 According to CryptoQuant data, this accumulation trend has seen the Bitcoin reserves on exchanges on a downtrend since March 21. At the time of writing, the Bitcoin exchange reserve is at 1.98 million BTC. Related Reading: Ethereum Sees Notable Rise In Daily Activity, But Why Is Price Down? Basically, whale accumulation tends to swing the balance into bullish among other traders. Fundamentals surrounding Bitcoin like the upcoming halving point to price growth in the near future, making it an ideal time for investors to position themselves in the market. At the time of writing, Bitcoin is trading at $67,478. A key price level to watch is $69,000. If Bitcoin breaks above this resistance level, it could continue surging higher with the accumulation trend. BTC price at $67,000 | Source: BTCUSD on Tradingview.com Featured image from GoBankingRates, chart from Tradingview.com