Large-scale Bitcoin whale transactions indicate a bottom, according to on-chain statistics
Bitcoin (BTC) plummeted below the $35,000 level on Thursday as a result of Russia’s invasion of Ukraine. However, the cryptocurrency has greatly increased in value since then, and it is now trading around the $39,000 level.
Notably, according to data from behaviour monitoring company Santiment, Bitcoin’whales’ conducted a large number of transactions during this time period when values bottomed out.
As a consequence, the number of transactions above $100,000 and $1 million on the platform has increased to its highest level in a month; curiously, Bitcoin whale transactions previously peaked on January 24, just as prices were ready to bottom out before rising again.
“As Bitcoin prices reached a low of $34.7k on Thursday due to the war news, whales executed some MASSIVE trades. This is the highest volume of $100k+ and $1m+ $BTC transactions since January 24th, when prices increased 15% the following week.”
Why are Bitcoin whale transactions notable?
Given that Bitcoin has begun to rebound in the aftermath of US President Joe Biden’s announcement of sanctions against Russia, it seems as if the digital currency has bottomed out, with major players moving in just below the $35,000 mark as a buying opportunity.
Mike McGlone, the senior commodities analyst at Bloomberg, described the plunge as a ‘defining moment’ for the digital asset.
“I believe that this will eventually be an excellent buying opportunity for Bitcoin for longer-term traders. It will be remembered as a watershed point in history,” he remarked.
Additionally, Alex Mashinsky, CEO of Celsius Network, said that the current crisis between Russia and Ukraine functioned as a catalyst in assisting Bitcoin in establishing a crucial support level at $30,000.
Additionally, Finbold stated earlier this month that an investigation of the $35,000 zone indicates that it is far larger than prior zones of demand absorption. Glassnode, an on-chain analytics software, specifically highlighted that the $35,000 level should be strictly watched, stating:
“Our zone down here in this $35,000 zone is far greater than the demand absorption we have seen here, so this is something to keep an eye on. We have witnessed an increase in demand…> Individuals are willing to invest in the $30,000 to $40,000 bracket. It has been defended once more at this level.”
It’s worth noting that absorption did resume at this level, which is optimistic for Bitcoin; the crypto market is recovering momentum in response to geopolitical shifts.
Bitcoin is now trading at $38,850.95, up 1.52% in the past 24 hours and down 2.93 percent in the last week.
According to CoinMarketCap figures, the flagship digital currency is currently valued at $736.9 billion and has a 41.7 percent market share.