According to the latest on-chain revelation, the bitcoin network has seen a steady decline in high-value transactions over the past few weeks. This slow activity has been reflected in the price of the main cryptocurrency, which has had difficulty breaking out of its consolidation throughout the month of April.
Last week, bitcoin price struggled to stay above $67,000 despite touching the level several times. Since then, the price of btc has fallen and is down more than 2% in the last seven days, according to data from CoinGecko.
Interestingly, recent data on the chain suggests that this disappointing price performance could persist for the market leader unless a turnaround occurs, especially in terms of network activity.
Can Whale Activity Drive btc Price Beyond $73,000?
Noted crypto Analyst Ali Martinez x.com/ali_charts/status/1784146303963840978″ rel=”nofollow”>took platform to reveal that bitcoin whale activity has been steadily declining over the past six weeks. This revelation is based on Santiment's Whale Transaction Count metric, which tracks the number of btc transactions worth over $100,000 and $1 million.
Whales refer to entities or individuals that own substantial amounts of a particular cryptocurrency (bitcoin, in this case). As such, they have a significant influence on market dynamics due to their ability to execute large transactions, which can trigger speculation and potential price changes.
Martínez highlighted in his post that there has been a notable decline in bitcoin whale activity since March 14, the same day the leading cryptocurrency reached a new all-time high price of $73,737. This drop in activity has coincided with the recent underperformance of the bitcoin price.
However, the crypto analyst mentioned that an increase in high-value transactions could breathe life into the btc price. This is based on the reasoning that an increase in network activity could mean high demand for bitcoin, leading to elevated prices.
As shown in the chart below, the peak of the whale transaction count correlates with the new record price of btc.
<img decoding="async" class="aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-whale-activity-is-declining-why-a-change-is-important.jpeg" alt="bitcoin” width=”1200″ height=”538″ loading=”lazy”/>
Source: x.com/ali_charts/status/1784146303963840978" target="_blank" rel="nofollow">Ali_charts/x
Active bitcoin wallets on the rise: Santiment
An interesting piece of x.com/santimentfeed/status/1784139513956294675″ target=”_blank” rel=”nofollow”>string data This may suggest a growing demand for bitcoin and a bullish future for its price has come to light. According to Santiment, the number of active bitcoin wallets is increasing rapidly despite the choppy state of the market.
<blockquote class="twitter-tweet” data-width=”500″ data-dnt=”true”>
The total number of non-empties twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin
– Sentiment (@santimentfeed) twitter.com/santimentfeed/status/1784139513956294675?ref_src=twsrc%5Etfw” rel=”nofollow”>April 27, 2024
Active bitcoin wallets refer to the total number of unique addresses containing btc. Data from Santiment shows that the number of these “non-empty btc wallets” has increased by more than 2.5% in the last three months.
At the time of writing, bitcoin is trading just above $64,000, reflecting a 1.6% price increase over the past day.
x/GiWke223/” alt=”bitcoin” width=”2174″ height=”1434″/>
btc price breaks above $64,000 on the daily timeframe | Source: BTCUSDT chart on x/GiWke223/" target="_blank">TradingView
Featured image from Unsplash, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
