The Bitcoin price action has been muted over the past few days, trading within the $90,000 and $88,000 levels. Classically, consolidation periods often precede major moves either to the upside or downside of the market.

As such, questions on the next trajectory of the flagship cryptocurrency are being asked. A latest on-chain evaluation has offered a positive prognosis on the next direction for the Bitcoin price. 

Accumulation Demand Metric Surges To All-Time-High 

In a Quicktake post on CryptoQuant, on-chain analyst CoinNiel hypothesized that the Bitcoin price could be at the beginning of a bullish trend. The market quant based this prognosis on two metrics — the Accumulator Address Demand and the Liquidity Inventory Ratio (month). 

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The Accumulator Address Demand metric monitors the net buying pressure coming from addresses that buy Bitcoin consistently, and without any significant selling. This behavior (of buying and rarely selling) is typical of the large-scale Bitcoin holders, commonly known as the whales. 

Notably, CoinNiel also pointed out that when major withdrawals from exchanges occur, they are rarely ever incited by retailers, but by whales. As such, when the Bitcoin whales withdraw their holdings from exchanges, their buying pressure translates into an increase in the Accumulator Address Demand. 

From the chart above, the indicator has reached an all-time high level. According to the crypto pundit, this could be a sign that the whales are currently experiencing, on intense levels, the “fear of missing out.”

The second metric, the Liquidity Inventory Ratio (Month), also reinforces CoinNiel’s bullish outlook. This metric tracks and compares existing Bitcoin demand to the supply available on exchanges, showing whether demand can overwhelm available supply. 

When this ratio rises sharply, it is usually a sign that demand is absorbing newly created supply. From the data shared by the analyst, the Liquidity Inventory Ratio has also reached an extreme value of 3.8.

However, this extreme reading is only a reflection of what is happening on US exchanges. Hence, CoinNiel implied that, for the first time in years, US exchanges are recording exceptionally high demand relative to the coins available.

In theory, a 3.8 reading implies the imminence of a supply shock in the scenario where current conditions prevail. But, the analyst highlighted that it may not necessarily happen, as a 3.8 reading is more a sign of intensified whale demand than a surefire means to predict supply shocks. 

The big picture, especially when these two metrics are looked at together, appears to be distinctly bullish. This is because available data points out that the whales are likely positioning for what could be a resumed bullish trajectory for the Bitcoin price.

Bitcoin Price At A Glance

As of this writing, Bitcoin is valued at $88,520, reflecting an over 1% decline in the past 24 hours.

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Featured image by DALL.E, chart from TradingView

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BlackRock has purchased $77 million for its BTC holdings through its flagship iShares Bitcoin Trust (IBIT). This comes as they also filed for a Premium ETF designed to deliver yield alongside price exposure. BlackRock Steps Up BTC Accumulation Despite Downturn SoSoValue data confirms that BlackRock recently purchased 703.7 BTC, worth $79 million, through its IBIT

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BlackRock Bitcoin ETF (IBIT) continues to hit new milestones, scooping 3,450 Bitcoins on Friday, while registering 19 days of consecutive inflows. As BTC aims for fresh all-time highs after a breakout above $103K, IBIT contributed with $356 million inflow yesterday, taking the total inflows to more than $44.7 billion since inception, and holds a total of 625,000 Bitcoin in its treasury.

BlackRock Bitcoin ETF Cliches New Milestones

BlackRock iShares Bitcoin Trust (IBIT) has recorded inflows for 19 consecutive trading sessions since mid-April, while driving a majority of the inflows in this space. On Friday, the total Bitcoin ETF inflows stood at $321 million, of which IBIT contributed a major chunk.

As seen in the image above, BlackRock’s IBIT has witnessed consistent inflows periodically since inception, and leads its immediate competitor, Fidelity’s FBTC, by a margin of 4x. Furthermore, the asset manager also submitted the S-1 amendment for the BlackRock Bitcoin ETF (IBIT) while talking about the risks of Quantum computing. Commenting on this, Bloomberg ETF strategist James Seyffart said:

“To be clear. These are just basic risk disclosures. They are going to highlight any potential thing that can go wrong with any product they list or underlying asset thats being invested in. It’s completely standard. And honestly makes complete sense”.

Bitcoin ETF Inflows Approach Critical Growth Level

Bitcoin ETF flows are nearing a significant milestone that could trigger substantial price growth, reported Ecoinometrics. The report highlights that rolling 30-day inflows are currently just 10,000 BTC below the 60,000 BTC threshold. Econometrics noted that this flow-to-price model consistently leads to strong price appreciation for the cryptocurrency. As said, BlackRock Bitcoin ETF has been leading most of these flows.

The chart above shows a clear correlation between Bitcoin ETF flows and Bitcoin’s price movements over the past year. The chart illustrates how Bitcoin’s price, which has fluctuated between $60,000 and $100,000, responds positively when inflows cross above the 60,000 BTC threshold.

BTC Price Eyes Fresh All-Time Highs?

BTC price continues to show strength, currently trading at $103K levels and eyeing a breakout to fresh all-time highs above $109K. This is possible anytime soon amid heavy whale accumulation.

Wallets holding between 1,000 and 10,000 BTC—commonly referred to as Bitcoin whales—are continuing their accumulation trend, according to data from Cryptoranks. Often comprising institutional investors such as hedge funds and Bitcoin mining companies, these entities play a pivotal role in shaping the next move.

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