In the last week, Bitcoin prices fell to around $65,000, resulting in a net loss of 6.74%. This recent decline underlines the asset’s struggles in March, which, despite periods of attempted price breakout, has witnessed an equal or greater pullback, producing a current net monthly loss of 4.4%. Amid this price instability, the Analytics page Easy On Chain has shared an interesting trend on smart money accumulation in the Bitcoin market.
Bullish Market Divergence Dominates Bitcoin ActivityThis temporary fall in demand was reflected in the Exchange Whale Ratio, a key selling indicator, hitting a high value of 0.835, while the Stablecoin Supply Ratio (SSR), which compares Bitcoin market cap to stablecoin supply, also touched 10.95, indicating an exhausted buying power. Since then, Bitcoin has recorded a steady correction to $65,000, during which the Net Unrealized Profit/Loss (NUPL) for short-term holders (STH) turned negative, forcing these investors into panic.
However, signs of market re-accumulation by long-term holders began on March 22. While the Coins Days Destroyed (CDD) recorded a high value of 27.1 million, which showed movement of 2-7 year old coins, there was no significant change in the exchange inflows CDD level at 48,909. Meanwhile, $2.27 billion in ERC-20 USDT was moved from exchanges, indicating that whales and institutions acquired Bitcoin on the OTC market, bypassing exchange public order books.
Miners Participate In Accumulation ShiftAccording to Easy On Chain, recent activity by Bitcoin miners also supports the underlying accumulation trends. Notably, selling activity has declined, with their total holdings now valued at 1,805,235 on March 27. With a profit margin of 71.4% on present market prices, these participants are also discouraged from any forced selling.
At press time, Bitcoin trades at $66,003, reflecting a 4.23% loss in the past day. Easy On Chain analysts state the critical “life line” now lies at $63,200, i.e., the realized price for 1.5 to 2-year holders. For a bullish reversal to occur, there is a need for a revival in US spot demand marked by the Coinbase and Fund Premiums turning positive.
