On Thursday, June 26th, Bitcoin witnessed a slower recovery momentum as prices fell below $108,000. This led to a neutral “doji” candle on the daily charts after a notable rebound at the beginning of the week, driven by optimism surrounding the announcement of a ceasefire between Iran and Israel. However, recent chain data highlights the potential for a continuous recovery as Bitcoin supply dynamics highlights a marked shift from retail investors to wealthy buyers. Will the new highs in BTC be reached soon?
The weaker hands of Bitcoin retreat as strong hands lead the charging
Bitcoin’s supply demand dynamics documented a prominent transition from retail investors to large institutional buyers and wealthy people. Recent insights from crypto analysts show that retail investors (who own less than BTC 1) have significantly reduced positions since last year. This figure shows current retail holdings of 1.69 million btc, year-on-year, with a 54.5K Bitcoin cut.
A negative correction to accumulation over the past 12 months suggests that retailers are reluctant to hold it as prices rise.
In contrast, large Bitcoin holders, which have more than 1,000 BTC, have significantly increased their holdings to 15.57 million BTC, accounting for an increase of 507.7k BTC from the previous year. These investors accumulate at an average rate of 1.46K BTC, with a strong influx of +0.86 BTC.
In addition to the bullish memo, institutional investors are absorbing seven times more BTC than retailers sell. Overall demand for Bitcoin continues to outperform available supply as post-harving issuance fell to around 450 BTC per day.
Bitcoin Supply Dynamics | Encryption
Despite the strong signal, the data shows that retail FOMO (the fear of missing) has not yet been fully realized. Unlike the previous cycle in which retail purchases led to the leading market leadership, current sales pressures highlight the possibility of room for Bitcoin to grow.
BTC Flag Breakout looks at $137,000 high
At the four-day rally, Bitcoin price bounced back from $99,752 to $107,544, predicting a 7.87% jump. A potential ceasefire between Israel and Iran was the major news that bolstered this recovery.
However, tensions between these countries continue to last, so volatile assets like cryptocurrencies struggle to maintain momentum.
By press time, Bitcoin was trading at $107,807, and is less than 2% away from challenging the vital resistance of the Bull Flag pattern. Under the influence of this pattern, BTC prices were revised for six weeks, resonating within two downslope trend lines, allowing them to restore bullish momentum.
BTC/USDT -1D Chart
A successful flip of the overhead trend line will accelerate bullish momentum, driving the initial leg up to $120,000. If the pattern applies, post-breakout gatherings can be extended to $137,000.
Also Read: Coinbase to launch Crypto Perpetual Futures on July 21st
