- Bitcoin price has surged for eight days straight, headed toward a long streak.
- The Grayscale Bitcoin premium index has significantly rebounded, closer to zero than anytime since May 2021.
- Bitcoin spot exchange reserves show a downtrend, which points to short-term accumulation.
The recent Bitcoin price recovery has put the pioneer crypto on course for another bull run. On-chain analysts state that no great demand is needed for the price to continue to rise.
Bitcoin price recovery set to be the longest one in 2021
Bitcoin has made a comeback, and the increase in price in the past eight days may lead to the asset's longest rally in 2021. The all exchanges BTC outflow chart shows the total amount of BTC transferred from exchange wallets, and an increase in outflow (less BTC available in exchange wallets) means a decrease in BTC selling pressure.
The outflow of BTC from exchanges has dropped the asset's reserves significantly. This is a sign of accumulation on spot exchanges, and it supports the narrative of a price rally after breaking past the $30,000 price level. Further, no new outflow spike is noted in the past two days.
The interpretation by analysts is that large investors are likely to resist a sell-off to bears. There is no need for significant demand for the price to continue rising.
BTC all exchanges' outflow
The asset's price has advanced every day for over a week. Pankaj Balani, CEO of Delta Exchange, said,
The current momentum is strong, and $45,000 is in sight, but a conclusive break above $50,000 will take some doing.
Another key metric that fuels the bullish BTC narrative is the GBTC premium index. This metric tracks capital flows into the Grayscale Bitcoin Trust (GBTC), the largest BTC investment vehicle for institutional investors. Currently, it indicates that demand from institutions is growing in the US bull market.
The GBTC premium index rebounded significantly to -3.4, the closest to zero it has been in the past three months. Currently, the index is at -11, still above the level seen in the last two weeks.
GBTC premium index
Several metrics signal a bull run. Despite that, BTC price is far below its mid-April high of nearly $65,000. Undeterred by the current price level, on-chain analysts have a bullish outlook and see a potential break in BTC prices past $44,000.
Daniel Joe, an on-chain BTC analyst, tweeted
The recent #bullish price action in #BTC continues to help daily momentum get closer to crossing above neutral. Whenever this happens, we need to see follow through higher for validation. Strong confirmation and validation will likely push BTC to 44.6k to 45.1k.
— Daniel Joe (@DanielJoe916) July 28, 2021
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin is showing rising correlation with the S&P 500
Bitcoin and the crypto market have been in an uptrend since Wednesday following the Federal Reserve's decision to cut interest rates by 50 basis points. Bitcoin is up nearly 3% in the past 24 hours, rising briefly above the $63,000 level for the first time in three weeks.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Consensys case against SEC over Ethereum dismissed by Texas court
Consensys announced dismissal of a case it filed against the SEC in April about the agency's alleged actions against Ethereum. Judge Reed O'Connor of the Northern District of Texas dismissed the case on Thursday. Consensys claims that the court failed to examine the "merits" of its claim against the SEC.
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV
Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.
Bitcoin: On the road to $60,000
Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.