Despite the recent price corrections, Bitcoin has managed to return to the charts and continues to trade very close to the $ 60,000 resistance at the time of writing. In the past few days, Bitcoin has managed to make a full recovery after falling to $ 52,000 towards the end of March. However, as the price approaches ATH, traders may be wary of another price drop if a sale is to take place. The chances of such a scenario are slim, but cannot be completely ignored.
Interestingly, data provided by Santiment highlighted that whaling operations valued at more than $ 1 million are now seeing increased activity. About a year ago, whaling transactions were about 229 transactions per day, and that number has increased significantly, and at the time of writing, BTC was witnessing about 1,930 whaling transactions.
Transactions and address activities
While transactions and address activity are a good sign, this could also lead to whales selling their BTC, thanks to its high valuation at the time of writing. However, this is not a major concern for BTC traders, as most of the cryptocurrency’s whale addresses have accumulated BTC even in the bull market, and the $ 60k price level would be too early to sell cryptocurrencies given the Bitcoin price trajectory.
In addition, the amount of circulating supply that moved more than 10 years ago is also seeing an increase in activity, according to data provided by Glassnode.
Understanding Bitcoin’s blockchain activity can also help when it comes to gaining an idea of overall market sentiment. According to the asset-adjusted vitality chart provided by Glassnode, it is clear that it is currently accumulating and implies that HODLing behavior continues to dominate the Bitcoin market. The report, which shows the strong hodl sentiment in the market, stated that HODLing increased and especially balanced accumulation increased compared to the previous uptrend.
While BTC is trading close to $ 60,000, it may seem tempting to sell it and earn short-term gains, but the market is unlikely to give up and price correction may not be made this time. BTC has a significant upward momentum at the time of writing and is likely to try and break its resistance as investors expect increased price discovery past ATH as the second quarter of 2021 progresses.