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Bitcoin Uptrend Is Not Over Yet as Whales Are Accumulating BTC, Not Selling

The price of Bitcoin has consolidated between the $55,000 to $59,000 area, establishing the mid $50,000 region as support. The trend has coincided with strengthening on-chain fundamentals like the activities of whales and Bitcoin addresses.

The seven-day average active address for Bitcoin has increased concurrently since November 2020, when the asset’s price started accelerating. In a tweet, a pseudonymous trader known as “Crypto Birb” pointed out that BTC seven-day average over daily active addresses was sideways while price action had climbed. The upside trend was the strongest when backed by on-chain trends, an indication that on-chain trends have been supplementing both short and long-term BTC price cycles.

Big Whales Are Accumulating Bitcoin, Not Selling

Data from Santiment indicates that BTC whales have been mostly accumulating Bitcoin since more than 35,000 BTC has left exchanges in the last 30 days. The latest exchange outflows have pushed down exchanges’ BTC reserves to the lowest levels since early March, the period before Bitcoin got to its all-time high above $60,000.

According to Santiment, not all BTC whales are behaving in the same manner since there have been interesting trends where 100-1,000 BTC addresses added 353k more BTC since Feb. 1st while 1k-10k addresses shed 300k BTC.

although 1,000-10,000 BTC addresses have been selling, Whalemap said that this range was difficult to analyse since it could include exchange addresses which are not tagged by many on-chain data gathering platforms. Therefore, it would be more precise to compare 100 BTC to 1,000 BTC and then 10,000+ BTC holding addresses.

Glassnode researchers also found out that during bull markets, old coins move more frequently. When the long-time holders make a point to sell, more selling pressure is put on Bitcoin. At the current phase, the tendency of old BTC moving is lower than 50%. They explained that in bull markets, old coins tend to move more, increasing the relative supply of younger coins in the network.

Bitcoin Bull Trend Is Safe

Bitcoin whales have not been selling but accumulating Bitcoin, therefore the bull trend remains intact regarding the rising U.S. 10-yr treasury yields. Risk=on markets are in most cases affected in the near term when 10-year treasury yield starts rising. For instance, in the last two weeks, U.S. tech stocks experienced a steep pullback that overlapped with Bitcoin stagnation under $60,000.

However, since Bitcoin’s on-chain data is optimistic, as long as the $55,000 support level is defended, the bullish market structure would raise the probability of a larger rally.

Image courtesy of pixabay

Edward Nored

Edward Nored

Edward is a naturally curious BTC lover with a deep interest in blockchain, fin tech, fields which he dedicates his time to researching.


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