Bitcoin bulls confirmed their presence in the crypto space for the past two weeks. That meant a healthy respite for BTC enthusiasts anticipating more uptrends for the bellwether crypto. Nevertheless, investor worry starts to surface as the leading crypto approaches its near-term upper range.
Glassnode revealed that BTC supply in loss plummeted to new 4-week lows recently. That confirmed massive accumulation in October, and the impressive demand catalyzed the latest upward move. Can that signal that the latest lows might mark Bitcoin’s support area for the remaining 2022?
The latest upside meant market participants that purchase around the lower range already earned substantial profits. That might translate to enough exit liquidity if another bearish wave emerges.
BTC Bears Regaining Strength
Assessing BTC’s exchange flows showed a fascinating observation that could determine Bitcoin’s trajectory over the week. Bitcoin exchange inflow recorded a substantial uptick over the past four days. However, exchange outflows saw a significant slump in that timeframe.
The higher Bitcoin exchange inflows showed intensified sell pressure. Lower exchange inflows might signal a tanking demand. Also, it might indicate that BTC could suffer some decline this week. On the demand front, we noted a surge in the Purpose BTC ETF balance early in the month.
Wallets holding 100 – 1000 tokens also recorded a notable uptick until November 4. Nevertheless, the same metric presented outflows over the past 48 hours.
Crypto addresses with over 1,000 BTCs have sold their holdings since October’s early sessions. Nevertheless, this cohort presented an uptick in wallet balances over the previous two days. That could have enhanced the upswing in the 2-day phase.
The mentioned observations emphasize the mixed opinions within the market, as some whales bought the token while others sold it. That made it challenging to gauge Bitcoin’s next move. Nevertheless, the asset’s price action could present a fair conclusion.
The Better Prospects
BTC has had its price inside an ascending channel over the past two weeks. The crypto’s recent price move retested the current 2-week resistance range. Considering this resistance, increased exchange inflows, and declines in exchange outflows, we may anticipate an impending selling momentum.
Moreover, Bitcoin noted a high relative strength over the past 48 hours. Nonetheless, the RSI (Relative Strength Index) boasts some room before BTC dips into overbought tendencies.
Though upside chances remain, the latest indications suggest otherwise. The increased exchange inflows show Bitcoin might see another selling wave.