Bitcoin Buying Pressure Increases for the First Time Since April ATH Level

Several crypto market analytics aggregators have noted the visible trend of massive Bitcoin accumulation on several exchange platforms. Bitcoin reserves that were stored on centralized exchanges have kept depleting since May. Thus far, nearly $66 million worth of Bitcoin has been moved from the centralized exchange markets that account for almost 2000 BTC per day.

According to Glassnode weekly on-chain analysis report, Bitcoin outflows have traveled back to the levels in April. The histogram price behavior shows that in April, Bitcoin price made a breakthrough with $64,800 ATH for the first time in history. The report suggests the record price up until April was driven by the massive depletion of the beacon coin from the exchange platforms.

Glassnode has published its latest weekly on-chain report on July 12th, 2021. The report posits that the April ATH record price mark for Bitcoin was assisted by the massive institutional accumulation. According to the report, whales like Grayscale GBTC Trust moved a significant amount of BTC stashes out of the market. This created a ‘persistent net outflow trend’ on the crypto trade platforms.

When Bitcoin price crashed down in May, it was noted that a sizeable amount of Bitcoin reserves were sent into the exchange platforms for liquidation. At present, the net inflow volumes have moved into the negative zone while the net outflows are starting to rise. Specifically, the 14-day moving average (DMA) for the last two weeks is showing a visible uptrend for BTC exchange outflows with an average 2K beacon coin withdrawal per day.

On-chain Transaction Fees for Deposits have Declined

The data aggregator Glassnode also took a quick note of the shifts in the transaction fee metrics on centralized exchanges. The on-chain transaction fees for inflows have declined and shifted to 14%. This metric had a brief peak in May, going up by a percentage of as high as 17% for deposits fees. It should be noted that on-chain transactions constitute the ones that take place within a blockchain network.

In contrast to inflow fee metrics, the on-chain fees represented by outflows bounced up from 3.5% to 5.4%. In laymen’s terms, it shows the dominance of accumulation over sales. As per crypto analytics service DeFiLlama, the total value locked in Bitcoin has gone from $92 billion to $111 billion since June. This means that long positions have increased by 21% in a matter of last two weeks.

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