Bitcoin's Pullback Attracts Stronger Hands, Consolidation Phase Continues

Larger Bitcoin holders have continued accumulating despite a recent pullback in price. Over the past eight days, wallets holding between 10 and 10,000 BTC added a combined 19,696 units. This comes as Bitcoin ETFs attracted over $222 million in inflows so far in July.

According to Santiment, these factors point to a 'constructive' market setup, demonstrating that the crypto asset's supply is shifting toward stronger hands. The firm noted that retail demand is cooling, with weaker dip-buying activity from wallets holding less than 0.01 BTC during the same period.

BTC remains in its consolidation phase, or 'Bullish Transition,' although the window for a recovery is gradually narrowing, Swissblock said. During previous bullish transitions, the firm observed that Bitcoin consolidated for 40 days before moving into a recovery phase. The current cycle has lasted 30 days so far.