Bitcoin whales are buying now
Key takeaways: The number of bitcoin whales is growing, despite the price going down. Crypto related criminal activity decreased significantly in the last year. Bitcoin showed bearish signs prior to correction
Bitcoin Whales are not slowing down
Bitcoin has lost a lot of price momentum, while altcoins are using this opportunity to grow. In the past 10 days Ether grew 30% against the Bitcoin. LINK reached a new all-time high and is now worth around $20 per token. Binance coin, which has been in a bull run since March last year now trades at $41.
While some investors may be selling-off their holdings in anticipation of a further correction, bitcoin whales are still going bullish on the cryptocurrency.
Recent data from Glassnode demonstrates that whale addresses that hold at least 1000 coins are still increasing. In fact it has reached a new all-time high. Their Twitter post says: “This year alone 164 addresses got added, currently worth $6 billion.”
Crypto-related criminal activity dropped significantly
According to recent Chainanalysis report , criminal activity related to crypto transactions decreased by 83%. Despite the global pandemic, 2020 was a good year for the crypto market, especially the second half of it.
Bitcoin and many other cryptocurrencies not only recovered from the major crash on March 12th, but set new price records and welcomed an era of institutional investments. What's more transacting crypto became a lot safer last year. Due to transparent and traceable nature of crypto transactions on chain analysis shows that the criminal share of all crypto activity in 2020 fell to $10 billion representing 0.34% of total crypto transactions volume.
BTC/USD daily chart
After retesting the support level of a triangle for the fifth time, Bitcoin broke to the downside. There were several sighs calling for a further price decrease:
- Decreasing trading volume during increasing price
- Bearish divergence on a daily RSI
- Lucid SAR and MACD indicators being on a bearish side
Bitcoin is currently experiencing 25% correction since the price peak at $42,000.The price got held up by the lowest level of EMA ribbon. However, in case of a further correction, there is 0,382 Fibonacci Retracement level to provide the next support.