BTC Accumulation Inflows Reach All-Time-High Despite Multiple Overheating Signals

Julio Moreno, the Head of Research at Cryptoquant, has noticed a surge in demand among Bitcoin holders. He has found that data from Cryptoquant reveals an all-time-high inflow of Bitcoins into addresses that only receive but never spend, also known as accumulation addresses.

In a recent post on X, Moreno shared how Bitcoin inflows into accumulation addresses increased significantly during the recent Bitcoin rally. However, he also noted that BTC rose so quickly that some indicators began signaling an overheating phase. One such indicator is the Bitcoin bull-bear market cycle indicator, which indicated an overheating phase when BTC reached $60,000.

Moreno’s post further explained that the last time the Bitcoin bull-bear market indicator signaled an overheating phase was in December of last year. The signal followed an 83% rally by the flagship crypto, after which BTC entered into consolidation.

Moreover, Moreno considered the Bitcoin miners’ reward situation. According to him, given the current Bitcoin market conditions, the Bitcoin miners are overpaid, suggesting that Bitcoin has entered an overheating phase. Similarly, the miners’ reward spiked in December 2023, when BTC rallied significantly.

In addition to the signals from the previous three indicators identified by Moreno, the Cryptoquant Head of Research also observed extremely high levels of traders’ unrealized profit. At 45%, Moreno believes this is an indication that BTC traders could result in a profit-taking process by selling their Bitcoins.

At the time of writing, Bitcoin traded for $61,942, marking a fourth consecutive day of sideways movement after reaching a season-high of $64,000, according to data from TradingView. This sideways movement is a price consolidation, suggesting the actualization of Moreno’s observations. Nevertheless, the pioneer crypto’s upside momentum remains intact, and users anticipate higher levels as the current bull cycle evolves.