June 3, 2023

JIC News

The latest cryptocurrency market news for today.

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

2 min read

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.

Source: u.today

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.

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.

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