As an experienced analyst, I’ve closely observed the Bitcoin market for several years, and I believe that recent developments are worth paying attention to. The fact that whales are not selling their coins despite Bitcoin breaking above $67,000 is a bullish sign. It indicates that they anticipate further gains in the coming days and weeks.
As a researcher observing the cryptocurrency market, I’ve noticed an upward trend in Bitcoin‘s price, surpassing $67,000 and aiming for the significant milestone of $70,000. One industry analyst made a notable observation during this price surge: large-scale Bitcoin holders, possessing over 1,000 coins, have not transferred their coins to exchanges. Instead, they seem to be anticipating further price increases in the near future.
Over the past weekend, market activity was relatively subdued. However, the recent price surge of Bitcoin today is overly enthusiastic for bullish investors. Traders often cash out their coins, with smaller holders joining in, particularly when gains are uncertain or not robust enough. Even larger players, known as whales, may do the same.
Whales Are Not Selling, More Gains Expected?
Despite the present trend appearing similar to whales clinging on, hoping for significant price rebounds, an analyst points out that the 30-day average hovers around 641 BTC, exhibiting a marked decline since mid-2023.
As a crypto investor, I’ve noticed that even during short-term price fluctuations, the whales remain confident and unphased. Their steadfastness doesn’t automatically indicate an imminent moonshot, but rather reinforces their belief that prices could potentially rise in the near future.
With Bitcoin surpassing the $66,000 mark, on-chain analytics indicate that the Market Value to Realize Value (MVRV) ratio is following suit. As per the analyst’s assessment, the MVRV ratio for investors holding Bitcoin between 1 and 3 months ago now stands at over 66,500.
With this expansion, short-term investors have moved beyond the “unrealized loss” phase, indicating a change in their perspective towards Bitcoin. As the current market price hovers above $66,700, which is above the $66,500 mark, HODLers now enjoy profits and can choose to sell or continue holding.
Bitcoin Finds Strong Support Above $60,000
As an analyst, I cannot predict with certainty how Bitcoin prices will behave in the near to intermediate future. However, it’s worth noting that approximately 530,000 Bitcoins were traded at a price of $66,250. Given this significant trading volume, it appears that this level could serve as a dependable support line for the market. If buyers are able to absorb the selling pressure, then $66,250 may function as a solid foundation for the next bullish surge toward a new record high.
As an analyst, I’ve observed that the Bitcoin price tends to find reliable support above the $60,000 mark. Another colleague of mine, X, has mentioned this as well based on the Bitcoin Short-Term Holder Cost Basis (STHCB) data. The STHCB currently hovers around $60,700. In the past, we’ve seen that the STHCB acts as a dynamic support during bullish trends and resistance in bearish markets.
In the context of on-chain research, the STH CB (Short-Term Holder Cost Basis) indicator represents the typical purchase price for Bitcoin held by investors with a holding period of under 180 days.
In historical market trends, the STHCB has functioned as a foundation during bullish rallies and a barrier during bearish downturns. At present, the STHCB is located at $60.7K and is gradually rising, implying a possible lower limit for the price.
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2024-05-20 20:10