Key Points
- Entities holding at least 1k Bitcoin coins have increased significantly, banking on expectations of higher inflows into Bitcoin spot ETFs.
- Bitcoin’s accumulation trend score indicates that larger entities are continuing to add to their positions.
Bitcoin [BTC] was seen consolidating around old all-time highs (ATH), as market participants eagerly awaited a decisive move towards the next big target of $75,000.
The buying activity remained strong, indicating that most of the larger entities were adding to their positions. This steady accumulation suggests that investors believe that BTC’s market still has room for further price gains.
Increasing Number of Whale Addresses
The bullish sentiment was also reflected in the rapidly increasing number of whale addresses, i.e., addresses holding a minimum of 1,000 coins. As of the 30th of March, the total number of whale entities had risen to 1,617, up from 1,565 the previous month.
This optimism was likely fueled by expectations of higher inflows into Bitcoin spot ETFs. These investment vehicles have captured the majority of Bitcoin’s supply since they began trading in early January.
Spot ETFs Attracting Inflows
The ten new spot ETFs have attracted inflows worth more than $12 billion since listing, according to SoSo Value data. Demand for these ETFs is expected to increase. Jinze, an analyst at cryptocurrency investment firm LD Capital, predicted a strong next week as large funds could shift capital to spot ETFs due to the end-of-quarter rebalancing.
Some of BTC’s key technical indicators were analyzed to gain insights into its next directional moves. The Relative Strength Index (RSI) moved closer to 60, a breach of which could add considerable bullish optimism. The On Balance Volume (OBV) mirrored the price action, suggesting a balance between bullish and bearish forces. The Moving Average Convergence Divergence (MACD) indicator looked likely to make a bullish crossover with the signal line, which could increase the chances of Bitcoin’s elevation in the coming days.
