Bitcoin (BTC) price, which is consolidated in the range of 55-59 thousand dollars, determined the middle 50 thousand dollar band as support. On the other hand, on-chain indicators such as whale and address activities are getting stronger.
Since Bitcoin started the rally in November 2020, the average seven-day number of active addresses has also risen with the price of the coin. Anonymous investor, known as “Crypto Birb” stated that:
“As the bitcoin price is rising, the average seven-day number of active addresses remains the same. The uptrend is strong when supported by on-chain trends.”
Whales are savings, not sales
Big Bitcoin whales often choose to accumulate Bitcoin, according to Santiment data. Over the past 30 days, more than 35 thousand BTC have withdrawn from exchanges and the exchanges’ BTC reserves have bottomed.
Santiment team, he explained as follows:
“As you can imagine, not all Bitcoin whales behave the same. However, we have seen some interesting trends in recent months. Since February 1, 355 thousand Bitcoins have been added to addresses with 100 to 1,000 BTC, while 300 thousand from addresses with 1,000 to 10 thousand BTC have been added. Bitcoin is out. “
Although the graph shows that addresses with 1,000-10,000 BTC are selling, Whalemap analysts think this range is a difficult range to analyze.
These addresses include exchange addresses that are not tagged by on-chain data collection platforms. For this reason, analysts think it would be more accurate to compare addresses with 100-1,000 BTC and addresses with more than 10 thousand BTC.
Glassnode researchers, on the other hand, found that old cryptocurrencies were moved more frequently during bull markets.
Long-term investors selling Bitcoin significantly increases the selling pressure on the cryptocurrency. However, the proportion of old cryptocurrencies moved in the current bull market compared to previous cycles found to be much lower:
“Almost half of the cryptocurrencies that changed hands in previous bull markets were more than 6 months old. This rate fell to 36 percent in the current bull market.”
55 thousand dollars support is critical
Considering that large whales continue to accumulate Bitcoin between $ 55-59,000, it is possible to say that the bull market will continue despite the increase in US government bond yields.
The increase in the yield of 10-year government bonds generally results in the depreciation of risky markets in the short term.
In the past two weeks, while the shares of US technology companies have lost value, Bitcoin has also fallen below $ 60,000.
However, on-chain data gives positive signals for Bitcoin, and it seems likely that the rally will continue if the $ 55,000 is held.