Large-scale Bitcoin whales transactions signal a bottom, on-chain data shows
Following Russia’s invasion of Ukraine on Thursday, Bitcoin (BTC) fell below the $35,000 mark. Since then, however, the cryptocurrency has risen significantly, and it is presently trading around the $39,000 mark.
Notably, during this time, Bitcoin ‘whales’ made an enormous amount of transactions in this range as prices bottomed out, according to data from behavior analysis platform Santiment.
As a result, the number of transactions on the platform above $100,000 and $1 million has peaked at their highest level in a month; interestingly, Bitcoin whale transactions last reached their peak levels on January 24, just as prices were about to bottom out before rising once again.
“As Bitcoin prices bottomed out at $34.7k with Thursday’s war news, whales have made some MASSIVE transactions. This has been the largest amount of both $100k+ and $1m+ $BTC transactions since Jan. 24th, when prices jumped +15% the week following.”
Bitcoin Whale Transactions. Source: Santiment
Why Bitcoin whale transactions are noteworthy
Given that Bitcoin has begun to recover following the announcement of sanctions against Russia by US President Joe Biden, it suggests that the digital asset may have bottomed out with prominent players stepping in just below the $35,000 range as a buying opportunity.
Bloomberg senior commodity strategist Mike McGlone considered the dip a ‘defining moment ‘for the digital asset.
“I think this is ultimately going to be a very good buying opportunity for Bitcoin for longer-term traders. It’s going to be looked back upon in history as a defining moment,” he stated.
Furthermore, Alex Mashinsky, the CEO of Celsius Network, has also said the ongoing conflict between Russia and Ukraine has acted as a catalyst helping Bitcoin establish a critical support level at $30,000.
On-chain analysis absorption at $35,000
Whatsmore, Finbold reported earlier this month that an analysis of the $35,000 zone shows that it is substantially greater than previous demand absorption zones. On-chain analytics platform Glassnode, in particular, stated that the $35,000 threshold is one that should be closely monitored stating:
“Our zone down here in this $35,000 zone is much larger than we have seen demand absorption here so this is something to pay attention to. We have seen demand step in <…> People are willing to step in at that $30,000 to $40,000 range. It’s been defended at this stage once again.”
It’s worth mentioning that absorption did step in at this level once again, which is bullish for Bitcoin; the crypto market starts regaining strength in the face of geopolitical changes.
Currently, Bitcoin is trading at $38,850.95, up 1.52% in the last 24 hours and down 2.93% over the previous week.
The flagship digital asset is now worth $736.9 billion, with a total market dominance of 41.7%, according to CoinMarketCap statistics.
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