The Bitcoin price action has been muted over the past few days, trading within the $90,000 and $88,000 levels. Classically, consolidation periods often precede major moves either to the upside or downside of the market. As such, questions on the next trajectory of the flagship cryptocurrency are being asked. A latest on-chain evaluation has offered a positive prognosis on the next direction for the Bitcoin price.  Accumulation Demand Metric Surges To All-Time-High  In a Quicktake post on CryptoQuant, on-chain analyst CoinNiel hypothesized that the Bitcoin price could be at the beginning of a bullish trend. The market quant based this prognosis on two metrics — the Accumulator Address Demand and the Liquidity Inventory Ratio (month).  The Accumulator Address Demand metric monitors the net buying pressure coming from addresses that buy Bitcoin consistently, and without any significant selling. This behavior (of buying and rarely selling) is typical of the large-scale Bitcoin holders, commonly known as the whales.  Notably, CoinNiel also pointed out that when major withdrawals from exchanges occur, they are rarely ever incited by retailers, but by whales. As such, when the Bitcoin whales withdraw their holdings from exchanges, their buying pressure translates into an increase in the Accumulator Address Demand.  From the chart above, the indicator has reached an all-time high level. According to the crypto pundit, this could be a sign that the whales are currently experiencing, on intense levels, the “fear of missing out.” The second metric, the Liquidity Inventory Ratio (Month), also reinforces CoinNiel’s bullish outlook. This metric tracks and compares existing Bitcoin demand to the supply available on exchanges, showing whether demand can overwhelm available supply.  When this ratio rises sharply, it is usually a sign that demand is absorbing newly created supply. From the data shared by the analyst, the Liquidity Inventory Ratio has also reached an extreme value of 3.8. However, this extreme reading is only a reflection of what is happening on US exchanges. Hence, CoinNiel implied that, for the first time in years, US exchanges are recording exceptionally high demand relative to the coins available. In theory, a 3.8 reading implies the imminence of a supply shock in the scenario where current conditions prevail. But, the analyst highlighted that it may not necessarily happen, as a 3.8 reading is more a sign of intensified whale demand than a surefire means to predict supply shocks.  The big picture, especially when these two metrics are looked at together, appears to be distinctly bullish. This is because available data points out that the whales are likely positioning for what could be a resumed bullish trajectory for the Bitcoin price. Bitcoin Price At A Glance As of this writing, Bitcoin is valued at $88,520, reflecting an over 1% decline in the past 24 hours.

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