Bitcoin has been consolidating throughout the past week, seeing some turbulent price action that has caused it to range between $22,000 and highs of $24,200. The selling pressure seen here has been quite significant.
That said, each rejection and subsequent decline has been rapidly absorbed by bulls, signaling that there’s a strong possibility further upside is imminent.
One on-chain analyst is also noting that transactional activity on Coinbase points to institutional involvement in the market, including what appears to be a recent 12,006 BTC transaction sent to various OTC-related cold wallets.
Bitcoin Shows Signs of Strength as Altcoins Plummet
At the time of writing, Bitcoin is trading down marginally at its current price of $23,730. This is around the price at which it has been trading throughout the past few days.
The selling pressure seen between $24,000 and $24,200 has sparked multiple strong selloffs, but there’s a possibility that bulls will be able to catalyze further gains in the mid-term.
This possibility stems from the strong reactions Bitcoin has posted following every selloff. Bears have been unable to gain any serious ground over the past few weeks.
On-Chain Data Points to Institutional Accumulation
One factor that could bolster Bitcoin in the near-term is the sheer level of institutional involvement in the market at the present moment.
While speaking about this, the CEO of analytics platform CryptoQuant said that he is closely watching as transactions to OTC-related wallets flow out of Coinbase.
“12,006 BTC flowed out from Coinbase a few hours ago. As I said, it went to custody-looked-like wallets. It seems that Coinbase makes a new cold wallet for each customer after the OTC deal for institutions. I’m very bullish on BTC.”
Image Courtesy of Ki Young Ju.
As seen above, these types of institutional accumulation trends do take place usually days before the cryptocurrency sees a rapid price ascent.Featured image from Unsplash. Price data from TradingView.