Bitcoin’s surge above $54k was not accompanied by volatility this time. Rather the transition from the consolidation has been smooth as it noted weekly gains of more than 10%.
The price has been resilient so far. Notably, the on-chain support level at $47,173 is now touted as the largest since Bitcoin was trading $11k. This was noted by the blockchain intelligence platform, Glassnode’s latest weekly report.
According to Glassnode’s UTXO Realized Price Distribution, nearly 6.5% of Bitcoin’s circulating supply or 1.2 BTC shifted on-chain while the support level has actually strengthened to rest above $47.17k level. This demonstrated “one of the largest on-chain BTC accumulation levels” ever.
The reports stated,
“We can see sustained and significant volume has transacted between $45.5k and $48.9k. This range now represents one of the largest on-chain BTC accumulation levels in history, certainly, the largest since the last cycle’s $20k ATH was breached.”
It is important to understand that at times of the movment of a large volume of coins on-chain and when an on-chain support level gains foothold, it indicates that there is significant accumulation interest.
Also, the buyers now perceive this level as a ‘value’ entry point.
But what would happen if the price tumbles near $40K lows? Even as on-chain support has been gaining strength since last week in an unlikely event of a bearish reversal in price, this level could form an equally strong point of resistance.
Bitcoin In Exchanges Declines Uninterrupted
The HODling game has been strong as evidenced by the amount of Bitcoin being held on exchanges has taken a hit. If the latest stats are to be believed, approximately 20% over the last 12 months have been moved from these platforms.
The decline in the amount of BTC held on exchanges could signify that more market participants were buying the coin but storing it offline. This could, in turn, contribute to a potential supply crunch which could significantly push the price of Bitcoin in the future.