Bitcoin Recovery Driven by ETF Inflows and Investor Accumulation
Cryptocurrency analytics company Glassnode has revealed that Bitcoin's strong recovery from its mid-August lows is driven by the year's largest ETF inflows, Bitcoin outflows from exchanges, and widespread accumulation by investor groups.
The most significant obstacle for Bitcoin to overcome in order to reach its January peaks is the high supply zone between $81,000 and $86,000, according to Glassnode's analysis.
A significant short liquidation zone still exists between $82,000 and $86,000, but approximately 86% of the liquidation clusters that were ahead of Bitcoin's price during the rally have been cleared.
The company also noted that a strong reduction in leverage occurred in the futures market, with open positions decreasing by 11 percent during the bull run.