Bitcoin got off to a difficult start this year, with prices still hovering between $ 45,850 and $ 48,500 as the market waits for a miracle.
At press time, the crypto king is trading at $ 46,790, up nearly 1% on the daily chart but down nearly 3% on a weekly basis. The market looked pretty boring to many as total market cap dropped 1.3% to $ 2.24 trillion.
However, when comparing the recent BTC drop to other corrections of the same size, it can be seen that the nearly 40% drop is being bought in faster. So far, the current downward movement has lasted 53 days and hit -38% from the last ATH. However, they are more likely to be periods of silence that have not moved about 200 days in the past.
So while BTC may have parabolic moves like it did in previous cycles, it could also continue to decline. Right now this cycle isn’t that bad considering the losses are much higher than in previous cycles. On the other hand, at the time of writing, BTC has retested the lower limits and some things appear to have changed.
The changing price lured whales back when one of the largest Bitcoin whales placed a bulk order back in 2022.
Data from Bitinfocharts shows that the third largest Bitcoin address added 456 BTC to an average price of $ 46,363 in January.
The purchase is valued at approximately $ 21 million. In the context of price changes, this action represents a dip-buy mentality of whales.
Looking at the larger market, small fish bought the decline when the price fell to $ 47,000 but is slowly slowing down as whales are fairly actively handing out coins towards the end of the year. For now, whales buying similar dips could raise the BTC price in the near future.
However, the whale’s exchange rate is now above 90%, which means 90% of bitcoins sent to exchanges come from the top 10 inbound transactions. Bigger players deposit a lot of Bitcoin at lower prices. Therefore caution is advised.
What is ahead
The 1-year BTC HODL wave indicates the percentage of coins in circulation that have not moved in more than a year. It helps identify bullish and bearish market cycles. Approximately 57.12% of the total coins in circulation have not been moved in over a year, but they are 6.8% lower than the local high of 63.4% set on 09/09/2020.
Source: Kraken Intelligence
Before a local high is reached, a rising over 1 year HODL wave signals that market participants are amassing and is a good sign.
Additionally, the BTC transaction fees are lowest, while the average number of tokens transferred gives a lower peak. Additionally, the number of transactions is in the low end, suggesting that the Bitcoin network is relatively cheap, so this is a good time to start investing.
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