In today’s sessions, Bitcoin continues to trade above $11K despite a major rejection near $11,200 yesterday. The trend in the market is very bullish after the latest intense rally drove BTC prices from the lower-$9,000 regions to highs of $11,400 in just over a week.
The greater part of these gains came about earlier this week when the push past $10K accelerated and turned into a full-fledged uptrend.
Although in the past months, BTC price uptrends have been driven mainly by trading on margin platforms, this latest uptrend is unique as it appears to be fuelled by bitcoin’s fundamental strength.
As per data from analytics firm Glassnode, exchange inflows remain around their multi-year lows despite the “V-shaped recovery” that the flagship crypto asset has seen since the crypto market crash mid-March.
As seen in the chart below, indicators show that inflows tend to surge just before BTC peaks and form a long-term bottom.
However, the latest BTC price surge shows a lack of exchange throughout this movement. Since this metric isn’t trending up yet, it could mean the Bitcoin bulls still have room to run.
Long-Term Investors are Hodling Strong
BTC’s current strong upsurge in the past few days hasn’t swayed its long-term investors, who are seemingly determined to continue holding out for higher BTC prices.
Data shows that most investors aren’t yet selling their coins and are even accumulating their long-term reserves even as the flagship crypto sores to highs of $ 11,144 during press time. Their long-term investment approach is emphasized by current exchange inflows, which have remained very low despite BTC currently trading near the highest price level it has seen since the summer of 2019.
The lack of selling pressure from long-term investors has been highlighted by Glassnode, in a recent tweet, that pointed out investors are currently accumulating huge amounts of bitcoins.
If this holding trend persists, it could mean that BTC’s current uptrend has space to extend further, as it will likely avoid any massive influx of selling pressure in the near term.
Bitcoin Prices Projected to Outperform Oil prices in 2020 Q3
Although the first half of 2020 will mainly be remembered for the Market crash, Bitcoin eventually turned out to outperform other safe havens such as gold, platinum and oil.
In particular, oil faced its worst crisis since the 1970s due to the coronavirus pandemic and resultant global lockdowns. In fact, there reached a point where a barrel of West Texas Intermediate oil was even quoted negatively on the New York Stock Exchange.
Oil prices in July are now back at a safe value of $40, but this level is still lower than the initial value near $60 in Jan. At the same time, BTC has exploded into the $11,000 region, proving its strength as a store of value and hedge from inflation.