“Sophisticated passive buying” on spot bitcoin exchanges coincides with the trend of BTC ceding exchanges to cold wallets.

Corrected Bitcoin Supply Shock | Source: Willy Woo

Follow Data As researcher Willy Woo shared, the price rally in the Bitcoin market over the past two weeks has coincided with an increase in holders and speculators selling their coins.

However, the fact that BTC is able to withstand the selling pressure means there is buying pressure elsewhere. As report Earlier this week, bitcoin whales were piling up at current prices.

“This sale contrasts with data across exchanges showing sophisticated passive buying is taking place and BTC is being moved into whale-controlled wallets.” Woo adds:

“This view is reinforced as the amount of coins moving from exchanges to cold wallets increases. Meanwhile, whales holding more than 1,000 BTC ($45 million) are piling up. This shows that institutional investors are using their capital.”

Bitcoin Fund Flow on Exchanges and Money Flow to/From Wal-Wallets | Source: TradingView

According to on-chain data from Ecoinometrics, the number of whale addresses controlling 1,000 to 10,000 BTC increased even as the bitcoin price fell over the weekend.

the #Bitcoin Whale addresses are on a buying spree… Although BTC could fall following a stock market crash, there are signs that long-term holders see the current price as a good entry point. ???? pic.twitter.com/z0xSR5pzml

— Econometrics (@ecoinometry) February 12, 2022

BTC price target

Hunain Naseer, a researcher at OKEx, said that due to recent rejections and deviations from its 20-day moving average, as shown in the chart below, Bitcoin will take more time to accumulate in the short-term. However, reclaiming the $46,000 zone would make BTC more likely to test the $50,000 zone.

Daily BTC/USD price chart with blue arrows marking Friday’s trading | Source: TradingView

On the other hand, given the recent selling sentiment from hodlers and speculators, Woo has called $33,000 a solid bottom for Bitcoin. But $40,000 remains a critical support for BTC to hold, while $46,000-$48,000 remains a strong resistance area for the bulls.

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