Bitcoin: Whales count counters the norm, but what does BTC get in return
- The number of whales has increased since the last halving cycle.
- BTC’s value might soon drift away from the red.
According to Glassnode, there has been a major change in Bitcoin’s [BTC] whale trend over every cycle. On 15 May, the on-chain analytic platform mentioned that the number of whales in this cycle had increased, instead of decreasing as it has been over each Epoch.
The growth in the Number of Whale on the #Bitcoin network has been diminishing cycle upon cycle.
However, when assessing for our current cycle, we note a slight deviation in trend, with our present Epoch recording a 7% larger expansion in Whale growth than the prior.
🟡 Epoch… pic.twitter.com/dHGll8Wj9U
— glassnode (@glassnode) May 15, 2023
Read Bitcoin’s [BTC] Price Prediction 2023-2024
The Epoch in the Bitcoin context is used to describe the difference between one halving and another. For context, the halving is a four-year event where Bitcoin miners get rewards for sustaining the block creation on the network.
Bitcoin: Away from the usual
Based on the tweet above, the first cycle and second ended in a decrease in whale growth. This was the same case as the second and third cycles, and the season when Bitcoin came into the light and the initial halving.
However, a 7% growth less than 400 days to the next halving implies that many deep-pockets might consider the price drawdown from the ATH till now a better opportunity than the previous ones.
Nevertheless, there was still a chance that the trend could change. However, Santiments’ data showed that whales who have been a major driver of the BTC price, had taken the back seat.
At press time, the balance of addresses that hold 10,000 to 1 billion coins has significantly decreased. This implied that there has been quite a number of profit-taking, especially as the coin price surged in the first quarter.
Subsequently, whale transactions in the $100,000 and $1 million range heightened over the last few days. At 275 and 81 respectively, the hike in large transactions could serve as a parity to denote the whale interest in trading Bitcoin.
Light at the end of the tunnel?
Meanwhile, Bitcoin has constantly hovered around the $27,000 region. But will the change in the cycle trend affect the BTC price?
As per the daily chart, the Moving Average Convergence Divergence (MACD) showed signals that BTC could remain bearish. This was because the orange and blue dynamic lines had fallen below the zero-histogram line.
How much are 1,10,100 BTCs worth today?
Hence, this depicts that sellers were in control. In addition, the Exponential Moving Average (EMA) showed that BTC’s long-term potential could end in green. This was because there was an upward crossover of the 50 EMA (yellow) against the 200-day EMA (cyan).
Therefore, a situation like this could people the start of a new uptrend. For the short term, the 20 EMA (blue) is positioned above the 50 EMA. In a situation where this trend continues, BTC could recover from the downside.