Bitcoin’s consolidation around the $35,000-mark has been massive. Every time the king coin has touched a psychological resistance over the past 6 weeks, it has re-tested and overcome the same to climb to a new high above the previous range.
2020’s bull rally has continued into 2021 and now, other metrics are indicative of change as well, especially in light of the rise in Bitcoin’s market capitalization.
Bitcoin Whale Addresses attain new highs
Source: Santiment
As previously reported, the number of Bitcoin whale addresses increased significantly over the past week but over the past 24-hours, it touched a new all-time high. According to Santiment, 2,323 whale addresses with over 1000+ BTC were observed, that is, one address worth $33.7 million and over (At the time of writing).
This is a finding that is particularly significant and bullish since this means that investors have continued to accumulate, irrespective of the crypto’s higher valuation.
In fact, altcoins seem to be facing a similar situation since most assets are getting moved away from exchanges, suggestive of long-term hodling. However, another on-chain metric high may trigger further price appreciation.
Bitcoin Active Addresses, Ethereum Transaction Count factor
While Bitcoin may have attained a new high, its active addresses count is still under its December 2017 record.
Source: Coinmetrics
While the rally may not exactly depend on this particular metric to manifest a faster short-term spike, it carries significant long-term implications. With growing active addresses, BTC undergoes better distribution in the ecosystem, striking a balance between retail and institutional investors i.e whales.
Ethereum’s transaction count adhered to a familiar sight with its count just under its January 2018 high. Therefore, if BTC and ETH achieve new heights with respect to the above metrics, the price growth might take a further leg up on the charts.
Will other altcoins sustain the same rally?
Bitcoin and Ethereum controlled the rally in 2017 and Ether largely depended on BTC’s direction. In 2021, Ethereum’s correlation with Bitcoin has continued to dip, hence, the narrative may not mirror another domino effect for both these coins. However, the same cannot be said for other altcoins.
As expected, Bitcoin and Ethereum are consistently rising up the chart, but other coins such as XLM and Cardano are moving at 50-60% per day. It is important to note that these crypto-assets continue to hold a strong correlation with Bitcoin. Hence, their rally may face stronger corrections when Bitcoin’s price eventually registers a pullback.
