The recent move from Bitcoin to go above its previous all time high of around $67k to a new high of $68.5k was a big step ahead for the bulls. The largest digital currency by market capitalization came out of its relative slow trading session to get to this new highs despite some pressure from the bears to bring the index below $60k just days ago. This record move by the bulls was made possible due to a large number of market indicators. They included the highest concentration of crypto held by whales aka big holders.
Whales started hoarding Bitcoin again after the cryptocurrency reached a relative low of around $28.8k back in July. Previously, a few of these big players had sold some of their accumulated crypto during the relative highs of around $64k back in May and later when the market started to dip below $60k soon afterwards. Once it was clear that the cryptocurrency wasn’t going to go much below $30k, many of these smart whales bought a huge chunk of it and kept buying at these relatively low prices. Now, the index is above $66k and has set new all time highs and even now, the the bulls are holding on to their stash very carefully.
According to on-chain analytics company Glassnode, Bitcoin addresses who haven’t moved their crypto in a long time, typically 6 months are continuing to do so. This is one of the reasons why the digital currency found the momentum to post recent highs after several weeks of sideways trading around $60k. Also, on the flip side, the amount of Bitcoin held by cryptocurrency exchanges has reached a record low of around 12.9% recently. This shows that more and more Bitcoin was being pulled out of these crypto exchanges and into long-term wallets and the online platforms were facing a supply challenge.
According to Glassnode’s report:
“The market is likely still in the quiet accumulation phase, punctuated by low activity, large exchange outflows, and very modest strategic spending by experienced holders.”
This is relatively good news for the bulls as whales are still managing to not only resist the temptation to sell but are also actively increasing their wallet reserves with more Bitcoin. This will probably result in an extended rally and the current levels are highly likely not to be the highest valuation the crypto will achieve in this bull run.
Image Source: pixabay.com
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