Bitcoin (BTC) continues to exhibit significant volatility, drawing the focus of seasoned investors keen on its future trajectory. Recently, Bitcoin’s price has been consolidating around the $68,000 mark after reaching an all-time high above $73,000 in March.
Despite the ongoing market pullback, Bitcoin whales have been on a buying spree, acquiring 20,000 BTC in just 24 hours, as reported by crypto analyst Ali Martinez.
Massive Whale Purchases Highlight Renewed Confidence
This notable acquisition, valued at approximately $1.34 billion at current rates, occurred as Bitcoin prices dipped below $67,000. The surge in whale activity underscores a renewed confidence in Bitcoin’s long-term potential, even amid short-term fluctuations.
Martinez’s insights align with data from crypto analytics firm IntoTheBlock, which noted that addresses holding between 1,000 and 10,000 BTC were the main accumulators during Bitcoin’s rise to $70,000. The firm reported that these addresses added 20,000 BTC ($1.4 billion) to their balances over the past week, solidifying Bitcoin’s status as a preferred asset for institutional and large-scale investors.
On-Chain Data Signals Bullish Sentiment
Other analysts have been closely monitoring Bitcoin’s market dynamics. Glassnode, a leading on-chain data provider, observed a decline in Bitcoin Long-Term Holder (LTH) supply leading up to the all-time high of over $73,000 in March 2024. However, recent weeks have seen this distribution pressure ease, indicating a shift toward bullish market sentiment.
Further bolstering the bullish outlook, cryptocurrency analyst “Gaah” from CryptoQuant highlighted the Puell Multiple, a metric assessing Bitcoin miner profitability post-halving. The recent decline in the Puell Multiple suggests a market adjustment to increased scarcity, potentially setting the stage for a future rally in Bitcoin prices.
Key Insights from Analysts
“The reduction in miners’ daily revenue indicates that mining has become less profitable unless Bitcoin’s price increases significantly. The current Puell Multiple range confirms price discount, suggesting the network is undervalued. The decrease in the supply of new bitcoins could create upward price pressure, especially if demand grows. Investors may see the fall in the Puell Multiple as an indication that the market is adjusting to a new phase of scarcity, possibly paving the way for a rally,” noted Gaah.
Market Outlook
Despite market uncertainties, Bitcoin encounters minimal resistance around key support levels. Data from IntoTheBlock indicates 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 strengthens the bullish outlook for Bitcoin in the near term.
According to CoinMarketCap, BTC was trading at $69,173 at press time, reflecting a 2.72% surge over the past 24 hours.