Advertisement
AD

Main navigation

Whale Transactions Are Dropping on Bitcoin Network, But Here Is a Positive Sign

Advertisement
Tue, 11/01/2022 - 11:52
Whale Transactions Are Dropping on Bitcoin Network, But Here Is a Positive Sign
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 Santiment, Bitcoin whale transactions are currently fewer than those seen in October or November. TradingView data indicates that the price of the BTC/USD trading pair rose to intraday highs of $42,620 on Jan. 11 after dipping to $39,650 the previous day. Bitcoin presently trades at $41,938.

Advertisement

On-chain analytics firm Santiment notes that the Bitcoin network is currently getting around 13K transactions per day that exceed $100K in value, which is quite low compared to the number seen in October and November. It should be recalled that Bitcoin hit all-time highs of $69,000 on Nov. 10 as investors cheered the debut of the first Bitcoin futures ETF.

While the reason for the drop in whale transactions remains as yet unknown, the lackluster Bitcoin price action may have likewise contributed. 

Advertisement

This is because, in order to avoid price slippage, traders who typically perform large-volume transactions may prefer to split their orders into smaller quantities over a longer period of time. Market prices can vary quickly during periods of heightened volatility, causing slippage to occur during the time between when a trade is ordered and when it is executed.

This may result in smaller-sized transactions but not necessarily a decrease in overall transaction volume. According to CoinMarketCap data, Bitcoin's 24-hour trading volume is up 62.55% at a present value of $34,427,323,750.57.

Though down 39% from its all-time highs, the profitability of Bitcoin is currently at 65%, according to IntoTheBlock analytics. A good sign here is that 65% of holders in the money at the current price might imply less selling pressure from holders trying to break even on their positions.

Bitcoin aims to recover, as bearish forces dissipate

Article image
BTC/USD Daily Chart, Source: TradingView

Bitcoin has seen mild relief at press time, rising substantially from its recent low, having fallen below the $40K mark in the prior day.

It is worth noting that Bitcoin attempted to break a crucial support area and rebounded as dip-buyers returned. As bearish pressure wanes, BTC/USD pushes for a green day to justify the bullish dragonfly Doji candlestick formed on the daily chart.

According to some experts, Bitcoin has already bottomed out, and these are zones where a candlestick with a long tail signals support. Overall, BTC seems to be finding its footing just beneath the $40K zone, preserving its bullish tone.

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