Bitcoin (BTC) has continued its volatility trend, with recent fluctuations heightening the attention of seasoned investors on its next likely trajectory. Notably, the top crypto asset’s price has been consolidating its gains in the past few weeks, hovering around the $68,000 mark after reaching an all-time high above $73,000 in March.
Meanwhile, amidst the ongoing pullback, Bitcoin whales have embarked on a buying spree, acquiring a staggering 20,000 BTC in just 24 hours, according to insights shared by crypto analyst Ali Martinez.
The significant purchase, totaling approximately $1.34 billion at current market rates, occurred as Bitcoin prices dipped below the $67,000 mark. This sudden surge in whale activity suggests a renewed confidence in Bitcoin’s long-term potential despite short-term market fluctuations.
Martinez’s revelation comes just after crypto analytics firm IntoTheBlock revealed that addresses holding between 1,000 and 10,000 BTC have been the primary accumulators during Bitcoin’s recent surge to $70,000. On Thursday, the firm noted that these addresses added 20,000 BTC ($1.4 billion) to their balances over the past seven days, further solidifying Bitcoin’s position as a preferred asset among institutional and large-scale investors.
Other analysts have also closely monitored Bitcoin’s price movements and market dynamics. Glassnode, a leading on-chain data provider, highlighted a notable decline in Bitcoin Long-Term Holder (LTH) supply leading up to the cryptocurrency’s all-time high (ATH) of over $73,000 in March 2024. However, this distribution pressure has eased off in recent weeks, signaling a shift in market sentiment favoring bullish tendencies.
Adding to the bullish sentiment, cryptocurrency analyst “Gaah” from CryptoQuant highlighted the Puell Multiple, a metric used to gauge Bitcoin miner profitability following halving events. The recent decline in the Puell Multiple indicates a potential market adjustment to increased scarcity, potentially paving the way for a future rally in Bitcoin prices.
“The reduction in miners’ daily revenue indicates that mining has become less profitable, unless the price of Bitcoin increases significantly. The current range in which the Puell Multiple is quoted confirms Price discount, meaning that the network is potentially cheap. The decrease in the supply of new bitcoins could create upward pressure on the price, especially if demand continues to grow. Investors may interpret the fall in the Puell Multiple as a sign that the market is adjusting to a new phase of scarcity, potentially preparing for a rally.” The pundit noted.
Despite market uncertainties, Bitcoin appears to be encountering minimal resistance as it hovers around key support levels. Data from IntoTheBlock suggests that the cryptocurrency faces a crucial supply zone between $70,180 and $70,600, where over 450,000 addresses acquired 273,000 BTC. This accumulation by retail investors further reinforces the bullish outlook for Bitcoin in the near term.
According to CoinMarketCap data, BTC was trading at $69,173 at press time, reflecting a 2.72% price surge over the past 24 hours.
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