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As the end of July approaches, Bitcoin has made some significant gains. Indeed, the king coin closed in the green for the eighth consecutive day. Such expansion, however, may take a back seat if market corrections occur. Now, where do the investors stand as a result of this formation? Well, it appears that the HODL season has arrived.
Bitcoin accumulation begins
As can be seen from on-chain metrics, net flow volumes saw the highest single-day outflows in 5 years. The last time outflows were close to 60k BTC was back in 2016.
Here, a notable takeaway was the price movement right after this outflow peak in 2016. In less than a month, the crypto entered a short-term bull run. If the pattern is repeated this time, Bitcoin’s price can potentially rise up the charts again.
This extrapolation is also influenced by the fact that Bitcoin is approaching a potential Golden Cross. Historically, this marks the start of an uptrend, which would coincide with the previously mentioned historical bullish pattern.
Furthermore, according to the nett realised profit/loss charts, profits reached a two-month high yesterday. It is not difficult to understand psychology during such a period. High profits lead to high participation, and with people anticipating a major boom that will reportedly see Bitcoin reach $100,000 by the end of the year, their motivations and positions moving forwards become clear.
This contributes to the investor sentiment of HODLing beginning now.
Who all are HODLing?
While figures for retail investors have yet to be released, other major segments of the market have already begun to reveal their positions. Accumulation trends observed using Bitcoin addresses reveal which investors have accumulated coins in the last month. This month, it appears that accumulation is shifting towards Whales and large groups of all sizes.
This is a good sign because many whales were lost during the May sell-off and only began to re-appear in June.
Furthermore, miners had already entered the HODL phase before whales and investor numbers were released. Indeed, the Miners Position Index discovered that miners were not selling even at the time of this report. They are continuing to accumulate Bitcoin, which may help BTC achieve the previously mentioned potential price increase.
Once this pattern is confirmed, Bitcoin demand may increase, causing its price to skyrocket. However, before making a decision, investors should DYOR and thoroughly research the markets.