Despite recent positive movements in the price of Bitcoin [BTC], retail traders have been actively divesting their assets. This trend has not deterred institutional investors who have been quietly increasing their holdings.
Institutional Accumulation of Bitcoin Continues
Recent insights from CryptoQuant have shown a divergence in behavior between retail and institutional investors when it comes to Bitcoin. Institutional wallets have been steadily accumulating Bitcoin, adding over 67,000 BTC to their reserves in the last month alone, bringing their total holdings to more than 3.9 million BTC.
In contrast, retail investors seem to be offloading their BTC holdings, likely influenced by the sideways price action that Bitcoin underwent before its recent upswing. These periods of stagnant prices often cause retail traders to lose confidence, prompting them to sell in anticipation of re-entering the market at higher price levels when sentiment improves.
On the other hand, institutional players have been capitalizing on the downturn to increase their BTC holdings, positioning themselves to sell when prices rise.
Persistent Selling Pressures
An analysis of the Bitcoin Chaikin Money Flow (CMF) by CryptoCrypto indicates that selling pressures are still prevalent despite the recent price uptick. The CMF currently sits at approximately -0.04, suggesting a slightly higher selling pressure compared to buying pressure.
A negative CMF signifies ongoing distribution of Bitcoin, with more sellers than buyers active in the market. When the CMF falls below zero, it indicates that selling activity surpasses buying interest, potentially exerting downward pressure on prices.
A reversal of the CMF into positive territory would signal a strengthening buying pressure, which could further bolster price appreciation. Conversely, a sustained negative or declining CMF might signal waning buyer enthusiasm, leading to potential price consolidation or a pullback in the near future.
Bitcoin Exchange Flows Display Mixed Signals Amid Price Recovery
Bitcoin’s exchange flows have been fluctuating as its price continues to trend upward. Recent data reveals that there was a net outflow of nearly 5,000 BTC from exchanges in the previous trading session, indicating a bullish sentiment as investors withdraw their assets for storage or trading elsewhere.
However, the recent trend has reversed, with over 2,000 BTC flowing back into exchanges at the time of writing. This mixed movement of BTC on exchanges suggests that traders are responding to shifting market sentiments, balancing between holding and selling as Bitcoin’s price trajectory remains positive.