Bitcoin bulls are clearly losing steam as bears have been able to break below $9,000 and the daily ascending channel. They also managed to break the 26-EMA support but the volume for the bears is concerning.
Considering they managed to break below crucial support levels, the bearish continuation hasn’t been that strong, and volume has continued declining. Bulls can still see a daily equilibrium formed if they can hold the $8,117 support.
The short-term is definitely in favor of the bears but it’s not a clear downfall for Bitcoin just yet. According to recent statistics, the number of addresses holding Bitcoin has continued to grow further confirming the narrative about people accumulating Bitcoin.
Rising Bitcoin Accumulation
According to statistics from Glassnode, the number of Bitcoins held inside exchanges has been dropping significantly for the past 2 months and continues dropping. Around 2.6 million Bitcoins were held inside exchanges at the beginning of 2020, now only 2.393 million which means that 200,000 Bitcoins were withdrawn from exchanges in the last 5 months.
This clearly shows that people are more interested in holding Bitcoin than selling. The number of addresses with more than 1k balances has been dropping for the past 3 months but the ones with 10k or more have been growing since February of this year
The clearest chart is the one with addresses with 1 Bitcoin or more. At the beginning of 2020, there were around 781,000 addresses with >1 BTC whereas now we can see more than 810,000 addresses. A huge growth that wasn’t stopped by Bitcoin crashing in March.
The number of longs vs shorts is also still favoring the bulls. Currently, there are around 76% long positions vs only 23% short positions on BitMEX and this number is even greater for Ethereum which stands at 93% long positions.
This doesn’t necessarily mean that Bitcoin will recover fast in the short-term but it is a great outlook for the longer term.