Advertisement
AD

Main navigation

Bitcoin Whales Bought Extra 40,000 BTC Before Bounce Past $42K

Advertisement
Thu, 20/01/2022 - 13:17
Bitcoin Whales Bought Extra 40,000 BTC Before Bounce Past $42K
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

According to the latest Santiment data, Bitcoin whales bought extra 40,000 BTC in the last two days before the recent bounce to $42,000. The on-chain analytics firm notes that these large entities are back to owning the same amount before their dump began at $49,000. Bitcoin steadily declined from highs of $48,574 on Dec. 31, 2021, to mark lows at $39,650 on Jan. 10.

Advertisement

With imminent volatility ahead, Santiment notes that traders' perceptions of large-cap assets vary. Bitcoin traders believe a buy-the-dip opportunity is near while Ethereum traders bask in euphoria.

Several indicators seem to suggest buy-in signals. The Entity-Adjusted Dormancy Flow of Bitcoin suggests that BTC is creating a local bottom. To establish whether experienced market participants are spending their BTC, this metric looks at the ratio of current market capitalization to annualized dormancy value.

Advertisement

When spending from the so-called "old hands" falls, the Entity-Adjusted Dormancy Flow falls below 250,000, indicating a buy zone. This metric has timed every market bottom, and now that dormancy value has surpassed market capitalization, the same scenario might play out.

Bitcoin price

IntotheBlock's IOMAP model points to the $41,180-$42,470 range as the key support to hold for the Bitcoin price as more than 1.22 million addresses previously acquired 615,000 BTC here.

The on-chain analytics from Santiment notes that a stiff barrier exists on the Bitcoin path above $48,000 as nearly one million addresses holding 316,000 BTC here might want to break even on their positions.

Before the $48,000 barrier, Bitcoin must surmount selling pressure from 5.7 million addresses holding 1.54 million BTC.

Bitcoin trades at $42,000 at press time.

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD