• Bitcoin’s bearish trend may be replaced with a bullish surge depending on the actions of key holders and critical metrics.
• An increase in BTC holdings by large investors and US institutional holders could trigger a price surge.
• Currently, BTC is trading below its short-term moving average indicating a potential downtrend continuation.
Bitcoin Price Surge Depends on Key Holders
The recent CryptoQuant report suggests that Bitcoin’s sluggish journey and bearish trend might give way to a bullish surge, depending on the actions of key holders and critical metrics. The UTXO value bands indicate a decrease in BTC holdings for certain groups of investors which historically have triggered price increases when they are increasing. Additionally, the Geographical Supply Distribution by Entities suggests that there has been a decline in BTC holdings among US institutions while the price has risen 100% this year.
BTC Below Short-Term Moving Average
Examining the daily timeframe chart of Bitcoin indicated that the press time downtrend would continue as it was trading at approximately $25,600 experiencing a marginal loss of less than 1%. The price had descended below its short Moving Average (yellow line), which acted as a resistance level at around $27,000.
Price Increase Requires Whales & Institutions
To trigger an upturn in prices, whales holding 1,000-10,000 BTC need to accumulate more coins while US institutional holders need to inject capital into their positions. This could potentially lead to an increase in demand for Bitcoin resulting in prices climbing upwards towards previously seen levels or higher.
Bull Trend Predicated on Key Metrics
The possibility of transitioning into a bull market highly depends on two key metrics – UTXO value bands and Geographical Supply Distribution by Entities – both of which will require further accumulation from whales and US institutions respectively before any significant price hikes can take place.
BTC Bears Could Stay In Control
At present there appears to be no clear indication whether either or both these groups will make moves resulting in increased demand for Bitcoin leading to price surges; therefore bears could stay in control over an extended period until further developments occur