bitcoin price has cooled after rising as high as $71,000 following news of the ethereum ETF approval last week. Not long after the price surge, the leading cryptocurrency witnessed a correction to $67,000 and appears to be in a consolidation range again.
Interestingly, bitcoin whales seem to be waking up from their slumber, as they have been loading their bags with significant amounts of btc in recent days. This begs the question: can the appetite of returning whales drive bitcoin to a new record price?
Is a return to the all-time high imminent?
A pseudonymous analyst shared on a CryptoQuant bitcoin-The-whales-appetite-for-buying-returns?utm_source=telegram&utm_medium=sns&utm_campaign=quicktake&utm_content=abramchart” target=”_blank” rel=”nofollow”>Quick post that bitcoin whales are showing greater purchasing appetite and becoming active in the market again. The relevant indicators here are total whale holdings and a moving average that tracks a 30-day percentage change in the balance.
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Whales are entities (individuals or organizations) that own substantial amounts of a cryptocurrency (typically at least 1000 btc, in this case). Due to the size of their holdings, whales can often influence price movements and market dynamics through their activities.
In the Quicktake post, the on-chain analyst noted a recent increase in the monthly percentage change in whale address holdings and a steady increase in the total whale balance. The pseudonymous expert said:
Whales' appetite to buy bitcoin has returned with a vengeance, after a two-month drop in buying interest since March.
In the chart above, bitcoin whales were seen to have increased their holdings by over 11% in March as the btc price hit a new all-time high of $73,737. However, the btc accumulation rate stabilized in April, with the 30-day percentage change falling to around 3% by the end of the month.
bitcoin accumulation appears to be increasing in May, with the monthly percentage change back above 5% as of May 24. The CryptoQuant analyst said in the post:
Now they (whales) are returning with strong buying force, indicating that current prices are suitable for buying and accumulating despite widespread fear.
If btc accumulation by whales returns to its March level, there is a higher chance that bitcoin price will return to and perhaps surpass its current all-time high. This projection is even more plausible considering that the leading cryptocurrency hit a new high the last time whales accumulated btc at that rate.
bitcoin price at a glance
At press time, the price of bitcoin stands at around $69,216, reflecting a mere 0.8% increase in the last 24 hours.
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Featured image from iStock, chart from TradingView
