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Bitcoin Edging Toward $60K: Why Is the Coin Teasing?

April 3, 2021 at 12:10 by Ibrahim Anifowoshe

At 11:10 GMT on Saturday, BItcoin traded at $59,785, a loss of 0.2% in the last 24 hours. As the price of the king cryptocurrency corrects, the coin continues to trade extremely close to $60k. In the past few days, Bitcoin has been able to fully recover from a fall to $52,000 toward the end of March.

As this goes on, data from Santiment indicates that recent transactions from Bitcoin whales (wallets with over $1 million) are seeing increased activity. Around this time a year ago, whale transactions saw around 229 transactions per day. This figure has massively increased. At the time of writing, BTC was witnessing around 1,930 whale transactions, a whopping 734% increase.

data from santiment

Just yesterday, an under-the-radar wallet moved hundreds of millions of dollars worth of BTC. According to Blockchain.com, the wallet moved 11,999 BTC (or $703 million) in an instant for a mere fee of $571.

whale transaction according blockchain.com

The sending wallet, which was created in December 2018 and received substantial amounts of BTC in the same month, was ranked as the 60th largest BTC address prior to the transaction, according to BitInfoCharts.

The big-time whale transaction comes amid what on-chain data analyst Willy Woo calls a “supply shock.” He noted that the next bull rally is almost here. In an interview on Real Vision, Woo explains that:

We can see this from tracking the flows of coins out of the exchanges, where typically people speculate or buy and sell their coins, and they have a set inventory, some of which is allocated for speculation. We’ve just seen an unprecedented amount of depletion of that inventory. If you look back in the 2017 bull market, we saw like a five month depletion of inventory, and that was enough to propel the bull market of 2017 right up to the $20,000 [mark] from what initially was about $1,000 to $1,500 when the inventory depletion ended, and now we’re in this zone of the Lehman’s 12 months of inventory depletion.

Transactions and address activity is normally a good sign on the blockchain. However, whales selling their BTC could significantly affect the price. The coin’s current trajectory indicates that BTC may likely reach $100,000 before the year runs out. A continuous massive sell off from whales could continue to pull the price back into corrections.

entity liveliness data

However, overall market sentiment suggests an HODLing behavior. The entity adjusted liveliness chart provided by Glassnode shows that there are more days when Bitcoin is being accumulated compared to days it’s being liquidated.

Additionally, another key bullish sign to consider is that Bitcoin in exchange balances have been moving to third party wallets. Exchange balances have been in a consistent downtrend as traders have been transferring their coins into long-term storage. Over the past 12 months according to Glassnode, over 3.27% of the circulating BTC supply has migrated out of exchanges and into third-party wallets.

Although it may look lucrative to take profit on Bitcoin holding as Bitcoin price continues toward $60k. It is very clear that the next bull rally is already here. New all-time highs are expected to be reached as Q2 progresses.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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