Bitcoin made some big gains in late July. In fact, the king coin closed in the open for the eighth day in a row. However, that growth can take a back seat when corrections emerge in the market. Well, where does this formation place the investors? Well, it looks like the HODL season is finally here.
Bitcoin begins to accumulate
As can be seen from on-chain metrics, net outflows were the highest daily outflows in 5 years. The last time outflows were near 60,000 BTC was in 2016.
A notable takeaway here was the price move right after that 2016 outflow high. In less than a month, crypto entered a short-term bull run. If the pattern repeats itself this time, the price of Bitcoin can potentially climb back up the charts.
This extrapolation also arises from the fact that Bitcoin is getting closer to a potential golden cross. Historically this marks the beginning of an uptrend and this uptrend would coincide with the historical upward pattern mentioned above.
Also, if you look at the net realized gains / losses charts, earnings hit a 2 month high yesterday. Understanding psychology at such a stage is not difficult. Big profits lead to high participation and as people expect Bitcoin to hit a big $ 100,000 boom by the end of the year, their motives and positions become clear.
From now on, this will contribute to investor sentiment at HODLing.
Who are all HODLing?
While the numbers are not yet known by retail investors, other large swaths of the market have already started displaying their positions. The accumulation trends observed in the use of Bitcoin addresses show us exactly which group of investors accumulated coins in the last month. For this month it seems like the accumulation is moving towards whales and many groups of all sizes.
This is a good sign as many whales got out during the May sell-off and didn’t rearrange until June.
Also had miners already registered the HODL phase, even before whales and investor numbers even came up for it. In fact, the Miners Position Index found that the miners were already backing off the sale at the time of this report. They keep accumulating Bitcoin and this can further help BTC achieve the potential price increase mentioned above.
Once this pattern is confirmed, the demand for Bitcoin could escalate, which could eventually lead to a price spike. However, investors, make sure that you DYOR and study the markets well before making a decision.