Key Points
- The Divergence metric between Global Liquidity and Bitcoin has shown a rare green buy signal.
- Binance and Metaplanet have been purchasing Bitcoin as selling pressure decreases over the past month.
The Divergence metric, which measures the relationship between Global Liquidity and Bitcoin, has recently exhibited an unusual green buy signal.
This signal suggests potential for Bitcoin’s price to rise due to increased market liquidity.
Bitcoin Purchases by Binance and Metaplanet
In response to this buy signal, institutional investors such as Binance and Metaplanet have been actively purchasing Bitcoin. Over the past 24 hours, Binance has purchased $250 million worth of Bitcoin tokens, which were then sent to market maker, Wintermute.
Metaplanet has also been adding to its Bitcoin holdings, recently purchasing an additional 150 Bitcoin. This buying activity from institutions could potentially drive Bitcoin’s price up by increasing market demand and boosting market confidence.
Decrease in Selling Pressure
The cumulative net taker volume, a measure of aggressive Bitcoin selling, has been decreasing since February. This reduction in selling pressure has allowed Bitcoin’s price to stabilize and begin a slow recovery.
From February 24 to mid-March, Bitcoin faced significant selling pressure that brought its price down from $95K to nearly $75K.
However, signs of recovery were seen in mid-March when the negative net taker volume began to decrease, indicating a slowdown in market selling activity. This was followed by a rebound in Bitcoin’s price above $85K.
The current market conditions, characterized by the absence of a major economic slowdown and controlled asset liquidation, suggest a potential for reasonable Bitcoin price expansion.
