Bitfinex analysts have suggested that the bitcoin market has entered a consolidation phase, which is characterized by gradual selling from long-term holders (LTHs) and whales. As evidence, they point to significant net outflows from spot bitcoin ETFs, historically characteristic of LTHs gradual selling of assets in bull markets and during periods of consolidation, persistently negative dynamics in the positions of long-term holders in the last nine days, the inflow of bitcoins to exchanges from whale wallets before selling, and also the sale of miner reserves, whose reserves have reached a 4-year low.
However, it should be noted that there are many different players and opinions in the market. Thus, bitcoin has been in a consolidation phase for 97 days, casting doubt on the assertion that it has just entered this phase. In addition, there are technical traders, robots and other participants for whom LTHs and whale sales are not so important. There are various methods of market analysis. In addition to on-chain analysis, investors use graphical, candlestick, and indicator analysis that generates its own trading signals.
Thus, the conclusion of Bitfinex analysts about the consolidation phase is justified, but this is only one of many points of view. There is no final certainty on this issue yet as the situation requires further close monitoring, taking into account the plethora of factors and market approaches.