Bitcoin price rally to $65k due to ‘complete exhaustion’ from sellers – Glassnode
Bitcoin (BTC) is experiencing “recent sell-side relief” as it hovers around $65,000, according to Glassnode onchain data.
Data from Cointelegraph Markets Pro and TradingView show that in the ongoing recovery, the price of Bitcoin rose more than 20% from a low of $56,616 on Friday, July 12, to a high of $65,210 on July 16, which Glassnode called “a complete exhaustion of the sell-side pressure of the German government.”
According to the market intelligence firm, large entities, including miners and institutions, have historically been the main sources of sell-side pressure. The price of Bitcoin was recently reduced to $53,000 by Japan-based crypto exchange Mt. Gox and BTC are about the expected payout from the German government sale.
“Increasing our focus on the German government, we can see that their 48.8k BTC balance was depleted within a few weeks. Most of it was spread over a very short window between July 7th and July 10th, when more than 39.8k BTC were withdrawn from designated wallets.”
According to Glassnode's report, most of the sales by the German government came after the price of Bitcoin fell to around $54,000 and did not fall further. This indicates that it was already priced in the market.
According to Glassnode, a sustained period of flows across all ETFs over the past few days has contributed to the relief in Bitcoin markets.
BTC price saw a sell-off of $54,000 below ETF holders' average income flow cost basis – currently at $58,200 – connected to the 200-day moving average. “EFAs saw their first significant positive demand since early June, with over $1B in total inflows last week alone,” the report noted.
This is confirmed by data obtained by CoinShares, which shows that Bitcoin investment products recorded the fifth highest weekly revenue, with $1.347 billion in revenue between July 8 and July 12.
Similarly, data from Soso Value shows that spot bitcoin ETFs have seen seven consecutive net inflows, with more than $300 million flowing into 11 ETFs on July 15 in the US.
Last week, strong institutional interest pushed back the price of Bitcoin against an offer from the German government.
Related: Traders of Mt. Gox Bitcoin recovers over $65K when they cancel BTC transfers
Also contributing to easing the sell-side pressure was “reducing currency flows”. According to Glassnode, exchange flows—the amounts deposited and withdrawn from an exchange—become a critical measure of investor interest and market liquidity.
As the chart below shows, the exchange flows have decreased significantly from the all-time high recorded in March, with BTC volumes reaching a stable starting point of around 1.5 billion dollars per day.
A decrease in Bitcoin exchange flow is an indication that the selling pressure is easing.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
