- Bitcoin’s rising price has been accompanied by negative netflows from exchanges
- Metrics underlined confidence in the crypto’s current rally
Bitcoin’s [BTC] price has slowly but steadily made its way higher over the past week, after the explosive surge last Tuesday from $87k to $94k. This slow upward movement is a positive sign, reflecting steady demand. Traders and short-term holders haven’t been spooked into taking profits en masse, stifling the rally.
This could be coming from conviction. The U.S. state of Arizona narrowly advanced a Senate bill, paving the way for a Bitcoin strategic reserve. The selling pressure from miners is at its lowest since May 2024 too.
Bitcoin’s gains could continue for some more time
In a post on CryptoQuant Insights, analyst Darkfost pointed out that BTC’s supply in profit has been rising lately, which might be good news. The supply in profit above 90% generally marks euphoric phases, when Bitcoin has historically seen sizeable pullbacks.
And yet, these pullbacks wouldn’t be immediate. The hike in supply in profit hinted at confidence in BTC and can fuel its next bullish phase.
This view was reinforced by the exchange netflows data. The 30-day moving average of the metric has trended lower over the past week and has been in negative territory in April. This signaled accumulation, as BTC moved out of exchanges and likely into cold storage.
The 7-day moving average saw a steep dive in April – A sign that the price pullback was accompanied by heavy accumulation. If the market lacked confidence in the token, the recent gains would have come alongside a hike in BTC flows to exchanges as holders prepared to take profits.
Finally, at the time of writing, the 30-day MVRV ratio was the highest it has been since December and January, raising the fear of selling pressure from profit-taking. And yet, the longer-term MVRV was only just turning positive. The 180-day and 365-day values were nowhere close to the levels from November and December.
Therefore, the metrics revealed that accumulation has been rapid as BTC entered another bullish phase. The long-term holders are not at significant profit levels yet, based on the MVRV. This rally has more room to grow. Data from the liquidation heatmap showed that the $101k and $106k levels would be the next price targets.
