More and more people are hoarding coins, and the amount of BTC inflow to exchanges has dropped to the lowest level in ne

Original author: Mary Liu, BitpushNews

The cryptocurrency market was in consolidation mode on Tuesday, with Bitcoin continuing to hold above $63,000 while most altcoins saw small losses.

According to Bitpush data, the trading price of Bitcoin on Tuesday ranged from $62,815 to $64,445, with both long and short sides evenly matched. As of writing, BTC is trading at $63,010, down 0.5% in 24 hours.

Among altcoins, most of the top 200 tokens by market cap are in a downtrend. AIOZ Network (AIOZ) and Jito (JTO) led the gains, up 13.9% and 12.9% respectively, while Ethena (ENA) rose 7.2%. Helium saw the biggest drop, down 5.6%, followed by Book of Meme (BOME) down 5.6% and Celestia (TIA) down 5.5%.

The current overall cryptocurrency market cap is $2.33 trillion, and Bitcoin’s dominance rate is 53.4%.

BTC inflows to exchanges fall to lowest level in nearly 10 years

Another set of data that investors are watching is the amount of Bitcoin inflows into cryptocurrency exchanges, which recently hit its lowest point in nearly a decade. As Bitcoin investment enters a new era of institutional participation, there has been a major shift in holder sentiment this year, which may mean that a bullish recovery is imminent.

According to CryptoQuant, investors looking to sell BTC have been declining since February 2018. MA-365 D exchange inflows have dropped from 90,000 to 36,000, and exchanges are currently seeing 20,000 BTC inflows, the lowest since 2015 (when Bitcoin was trading below $1,000 per coin).

Meanwhile, CryptoQuant analyst Axel Adler noted that long-term holders (LTH) also stopped selling tokens and started reaccumulating, which has historically been bullish.

Expected volatility

Analysts at Secure Digital Markets noted: “Since Saturday, Bitcoin has been fluctuating between $62,700 and $64,700. The continued decline in the US dollar index and 10-year Treasury yields supports the valuation of risk assets. A break above the $65,000 mark is undoubtedly bullish.”

Although Bitcoin is currently in a consolidation phase, analysts noted that the recent rally “has fueled enthusiasm among cryptocurrency options traders: call options trading volume significantly outpaced put options trading volume, indicating bullish market sentiment.”

The data showed increased demand for out-of-the-money call options with strike prices between $70,000 and $100,000. According to Deribit, traders took more than $688 million in call options at a $100,000 strike price across various expiration dates, marking the highest notional open interest on the platform.

Market analyst Bloodgood said that in the spot market, buyers stepped in aggressively below $60,000, liquidating late short positions, and currently maintaining the weekly support level of $58,000 to $59,000, but the bullish power needs to continue, otherwise it will fall back to this level sooner or later.

Bloodgood analyst said, The daily level we are interested in now is just below $65,000, which will tell us whether this rebound will continue to rise or fall back below $60,000. On the daily chart, we can see that a clear downward trend is continuing, with a new low below $57,000.

Judging from the technical indicators, bulls want to see higher highs formed, which means that Bitcoin needs to rise above $67,000, while bears want to see this daily resistance level remain unchanged and bring Bitcoin back below $60,000. The bulls and bears will continue to compete within this range this week.

Speaking about the broader markets and forces affecting asset prices, Bloodgood said, “Macro factors have been swinging between hopes for a soft landing and dovish Fed policy and concerns about the resurgence of inflation.”

The boost the bulls need is the release of the Non-Farm Payrolls (NFP) report on Friday, which revealed that the U.S. economy added 175,000 jobs in April 2024, slowing from the upwardly revised 315,000 jobs in March and well below the markets expectations for 243,000 job growth.

“Normally, a weak job market isn’t what most people consider good news, but in this case it’s a good thing for stocks and cryptocurrencies because it prompts the Fed to take a more dovish tone,” Bloodgood concluded.

Data provided by Alternative shows that overall sentiment in the cryptocurrency market remains in greed territory, which some analysts say means further weakness is needed to ensure excess froth is cleared from the market.

This article is sourced from the internet: More and more people are hoarding coins, and the amount of BTC inflow to exchanges has dropped to the lowest level in nearly a decade

Related: Cardano (ADA) Stabilizes: Will Whales Buying Push Price Higher?

In Brief Whales took advantage of the last dip to accumulate ADA, but this accumulation has stabilized over the past week. The number of short-term traders holding ADA is declining, potentially leading to reduced price volatility. EMA lines are indicating a consolidation pattern, yet there’s a potential for a golden cross to emerge shortly. Whales capitalized on the recent dip to accumulate Cardano (ADA), leading to a noticeable stabilization in ADA’s price over the last week. This accumulation period coincided with a reduction in short-term traders holding ADA, suggesting a potential decrease in price volatility. Concurrently, the EMA lines for ADA price demonstrate a consolidation pattern, hinting at market equilibrium. Despite this, there’s an anticipation of a golden cross in the near future, a technical signal often associated with bullish…