Why Bitcoin’s Current Setup Looks ‘Constructive’ Despite the Pullback

Large Bitcoin wallets added 19,696 BTC in the past eight days alone. After showing signs of strength earlier Monday, Bitcoin reversed course shortly after. The crypto asset fell by 3% in the last 24 hours and briefly touched the $63,000 mark. Even as the price weakened, larger holders of the crypto asset have continued accumulating. Supply Shift Santiment found that wallets holding between 10 and 10,000 BTC have added a combined 19,696 units over the past eight days. On the other hand, wallets holding less than 0.01 BTC have shown weaker dip-buying activity during the same period, which indicates that retail demand is cooling. This comes at a time when Bitcoin ETFs attracted a little over $222 million in inflows so far in July. The analytics firm said that these factors together point to a “constructive” market setup and demonstrate that the crypto asset’s supply is “shifting toward stronger hands.” Zooming out, Swissblock said BTC remains in its consolidation, or “Bullish Transition,” phase, although the window for a recovery is gradually narrowing. During the previous bullish transition, the firm observed that Bitcoin consolidated for 40 days before moving into a recovery phase. ...