Bitcoin has witnessed an interesting week in terms of price movements. The price of the largest cryptocurrency has dropped below $30,000, which was last seen six months ago. Moreover, returns on the coin have dropped over 45.91% in the past three months, making the last quarter the worst in Bitcoin history.
However, a few trends have resurfaced this week. For beginners, there were levels that offered the opportunity to accumulate, and the accumulation of experienced market participants continued. Last week, it seemed that the reaccumulation phase was about to end.
The illiquid supply change metric continued its strong upward trend from assets, with 7 solid green bars this week. Additionally, as the chart below shows, the 30-day shift from liquid to illiquid supply hit a high of 95,800 BTC.
Blockchain analyst William Clemente:
“There are organizations that hold BTC for more than 155 days but have statistically very low selling behavior. Therefore, we are starting to see that the supply trend towards these assets continues.”
Bitcoin draws big W pattern
Interestingly, long-term holders (LTHs) buying this week largely offset sales from short-term holders (STHs). Glassnode’s chart indicates that LTHs added 21,136 more BTC to their holdings than STHs had reduced their holdings.
Then, while the chart representing the number of new whales (assets holding over 1,000 BTC) still remains stable, the number of new assets coming into the network is currently showing a notable W-shaped recovery. Commenting on the same issue, Clemente said:
“There is literally a big W on the chart, but I think most of it is retail.”
Clemente further highlighted the main reason why he believes the entry is coming from retail exhibitors, noting that the market has not seen any recent increase in the number of new whales. Still, he argued that the same is a requirement for the continuation of the broader bull market.
China’s pressures on mining were evident in the metrics. First, the hash rate dropped significantly, and second, in terms of selling pressure, miners began to reduce their holdings. Still, the pressure doesn’t seem to matter, according to the analyst. Indeed, according to the miner balance metric, all miners have only reduced their holdings by 5,125 BTC since the end of May. Despite the market recession, aggressive accumulation and net asset growth appear to be heading in the right direction.