Analytical platform Santiment reveals that wallet addresses holding BTC have declined within the past month. Analysis of on-chain data on July 18 revealed that the number of BTC addresses with a balance above zero has reduced by approximately 672,510.
👋 Bitcoin's amount of holders (any wallets with >0 coins) have been dropping aggressively as traders still seem to believe the March ATH was as good as it's going to get in 2024. When we see mass liquidations like this, the probability of a continued rebound only increases. pic.twitter.com/YTHEFTtfhY
— Santiment (@santimentfeed) July 17, 2024
According to Santiment, this decline could indicate a positive price outlook ahead for Bitcoin.
BTC Holding Wallets Declining Despite Price Rebound
Santiment suggested that traders might have thought Bitcoin’s March all-time high was its cycle peak. As a result, many traders sold off their Bitcoin holdings to take profits.
However, the analytics platform says the probability of a price rebound often increases after mass liquidations.
Bitcoin’s price has been in a downtrend since June when it attained the $70,000 price level after plummeting from its all-time high in March. On July 5, it dropped to an almost five-month low of $53,600.
However, the market has rebounded in the last three days. Bitcoin trades at $64,532, slightly increasing in the past 24 hours. Despite BTC’s rebound this week, the number of holding wallets has not increased.
In addition, Glassnode data reveals that the percentage of Bitcoin’s supply in profit has dropped to 89.43%. This represents a 6.5% decline since mid-June when Bitcoin touched the $70,000 threshold.
However, other BTC network metrics are bullish, hinting at a possible uptrend.
Ki Young Ju Bullish on Bitcoin Based on Network Metrics
In a tweet, CryptoQuant’s founder, Ki Young Ju, noted that Bitcoin’s over-the-counter (OTC) markets are overwhelming centralized exchange platforms.
#Bitcoin OTC markets are overwhelming CEX markets.
Whale wallets (>1K BTC), including spot ETFs and custodial wallets, added 1.45M BTC this year, totaling 1.8M BTC.
In 2021, about 70K BTC flowed in over the year; now, it's 100K BTC "weekly." I repeat. 100K BTC weekly. pic.twitter.com/YJPJpMtMPL
— Ki Young Ju (@ki_young_ju) July 17, 2024
Young Ju believes this observation indicates increased institutional adoption. Also, he stated that whale wallets holding above 1000 BTC, including spot ETFs and custodial wallets, accumulated 1.45 million BTC this year.
According to Ki Young Ju, these whale movements are not internal transfers from existing custodial wallets.
Moreover, the balance of old whale wallets (greater than 155 days) has not decreased, while that of new whales (less than 155 days) has increased. These new whales now hold approximately 1.8 million BTC, 9% of the circulating supply.
This is not internal shuffling from existing custodial wallets.
The balance of old whale wallets(>155d) hasn't decreased, while the balance of new whale wallets(<155d) has increased. pic.twitter.com/FnIbP1bd2H
— Ki Young Ju (@ki_young_ju) July 17, 2024
Young Ju recalled that in 2021, there were around 70,000 BTC inflows. This has improved, and currently, approximately 100,000 BTC is accumulated weekly.
Also, Young Ju revealed that approximately 16,800 BTC inflows went into Spot ETFs last week. The Spot ETFs recorded low outflow volume compared to previous weeks.
16.8K BTC inflow into the spot ETFs last week. Even when considering the outflowed ETFs as well as the inflow, it is still a small amount. The outflow from GBTC last week was only 0.7K. So it's 17% in total. I don't know where the rest of the BTC is from. Highly likely OTC, imo.
— Ki Young Ju (@ki_young_ju) July 17, 2024
For instance, the GBTC ETF recorded only $700 as outflows, unlike its previous patterns. Young Ju believes that over-the-counter Bitcoin contributed to this improvement.
Generally, the crypto market sentiment is now greedy as investors accumulate more coins, anticipating a price surge.
Other Analysts Share Their Thoughts on Bitcoin’s Price Action
Crypto analyst Michael Van de Poppe echoed a similar sentiment, noting that Bitcoin is consolidating nicely in the four-month range.
#Bitcoin is nicely consolidating within the four-month range.
As long as it stays above $60K, it's very likely going to continue rallying upwards.
Gold has been making a new all-time high, Yields are falling.
Just a matter of time until Bitcoin picks up. pic.twitter.com/6eHAqqOhgm
— Michaël van de Poppe (@CryptoMichNL) July 18, 2024
He believes Bitcoin reached its cycle low in early July and will continue its rally if it remains above $60,000. Van de Poppe sets his next BTC price target at $110,000.
Another analyst, Skew, noted that Bitcoin’s Spot price on Binance is approaching the supply range of $66,000-$70,000. Skew noted that limit bids are increasing with Bitcoin’s price, a sign of an early uptrend.
Bitcoin’s performance has improved as it vies to re-test the key resistance level of $65,000.
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Rida Fatima Crypto/Tech Content Writer 
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