Whales bought extra 40,000 BTC before recent bounce to $42K
According to the last Saniment data, Bitcoin whales bought an additional 40,000 BTC tokens in the last two days before the recent rally to $42,000. The on-chain analytics firm notes that these large entities own the same amount again before their discharge started at $49,000. Bitcoin has steadily declined from highs of $48,574 on December 31, 2021, to lows of $39,650 on January 10.
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 adhesion signals. The entity-adjusted dormancy flow of Bitcoin suggests that BTC is creating a local bottom. To determine whether experienced market participants are spending their BTC, this metric looks at the ratio of current market capitalization to annualized dormant 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
in the block IOMAP The pattern indicates that the $41,180-$42,470 range is the key support for the price of Bitcoin as more than 1.22 million addresses have 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 needs to overcome selling pressure from 5.7 million addresses holding 1.54 million BTC.
Bitcoin trades at $42,000 at press time.
