Investors continue to accumulate bitcoins after the price decline this week, according to blockchain data.
Over-the-counter (OTC) platform wallets on Wednesday left 10,292 BTC, which was the largest value in three and a half months. Outflows continued on Thursday and amounted to 11,056 BTC – a record volume since December 31. In just six days, about 35,000 BTC were moved in this way.
OTC platforms are usually used by large investors to avoid the price impact that will occur when buying on the open market. For this reason, outflows of funds from the OTC market are often associated with the activity of institutions. Also on Thursday, a record number of outgoing transactions from OTC platforms were registered. There were 245 of them, which corresponds to a tenfold increase in six days.
"There is a strong demand from institutions. Whatever bitcoin lows we see in the summer, they will not have it for long, " Glassnode analysts said.
In a similar way, the institutions behaved in the second half of February and after the listing of Coinbase shares on Nasdaq, withdrawing the cryptocurrency from the OTC market on the course rollbacks.
"We believe that most of the positions on borrowed funds have left the system and bitcoin should begin to form the basis. However, a sharp decline of 40% has shaken confidence. It will take time for the upward momentum to return to bitcoin, " said Pankaj Balani, CEO of the Delta exchange.
He admits that bitcoin could rise to $45,000 or even $50,000 by the end of the month, but does not rule out the possibility of a deeper drop if the cryptocurrency falls below the $36,000 support. " A convincing drop below would mean that this is more than a short-term correction. This will be a full-fledged pullback of the bull market, " Balani added.
The analytical service Whale Map, meanwhile, notes that 115,000 BTC was credited to the wallet of one of the " whales "at a price of about $39,931." This level should now play the role of support for bitcoin. The nearest resistances are located around $52,000 and $56,000, " Whale Map says.
The Itsblockchain portal reports that over the past two weeks, a large bitcoin holder has managed to sell and purchase assets again. So, on May 9, he allegedly liquidated 3,000 BTC at an average price of $ 58,503. 39. On May 15, 18 and 19, he bought-a total of 3,521 BTC. The average prices in these cases were $50,050. 54, $44,782. 37, and $41,897. 02, respectively. About half of the bitcoins came to his wallet with the last transaction. It is also associated with the sale of 12,000 BTC in January at prices from $35,000 to $40,000, after which, on the decline, it again added to the position.