The recent price action of Bitcoin has seen minimal fluctuations, hovering between the $90,000 and $88,000 thresholds. This period of consolidation is drawing increased attention, as such phases can often precede significant market movements in either direction. With this backdrop, speculation surrounding the future trajectory of the leading cryptocurrency is mounting.
An on-chain analysis provided by the analyst known as CoinNiel, featured in a Quicktake post on CryptoQuant, suggests that Bitcoin may be on the brink of a bullish trend. This assessment is rooted in two key metrics: the Accumulator Address Demand and the Liquidity Inventory Ratio (month).
The Accumulator Address Demand metric gauges the net purchasing pressure from addresses that consistently buy Bitcoin without engaging in substantial selling. This behavior is characteristic of large-scale Bitcoin investors, commonly referred to as whales. CoinNiel emphasizes that significant withdrawals from exchanges are generally driven by these whales rather than retail investors. Consequently, heightened buying pressure from these large holders leads to a rise in the Accumulator Address Demand.
According to CoinNiel, this indicator has reached an all-time high. Such a spike may indicate that these whales are currently experiencing a pronounced “fear of missing out” as market conditions evolve.
The second metric, the Liquidity Inventory Ratio, complements this optimistic outlook. This ratio compares the existing demand for Bitcoin with the supply available on exchanges, providing insights into whether demand can outpace what’s accessible. A sharp rise in this metric typically suggests that demand is effectively absorbing newly generated supply. Current data reveals that this ratio has climbed to an extreme value of 3.8, particularly on U.S. exchanges, highlighting an unprecedented demand relative to available Bitcoin.
While a reading of 3.8 could imply an impending supply shock under sustained conditions, CoinNiel notes that such a figure primarily signifies heightened demand from whales rather than guaranteeing an imminent supply crisis. When viewed collectively, these metrics paint a bullish picture, indicating that whales are positioning themselves for a potential recovery in Bitcoin prices.
As of the most recent analysis, Bitcoin’s price stands at $88,520, showcasing a slight decline of over 1% in the last 24 hours. The market’s attention remains focused on how the dynamics driven by these whale activities and market metrics will unfold in the near future.
