Bitcoin has bounced back from its latest low as on-chain data shows the Whale Transaction Count has witnessed a spike on the network.
Bitcoin Whale Transaction Count Has Just Seen A Large Spike
As pointed out by analyst Ali Martinez in a new post on X, whales notably upped their activity during the recent price surge. The indicator of relevance here is the “Whale Transaction Count” from the on-chain analytics firm Santiment, which measures the total number of transfers occurring on the Bitcoin blockchain that are carrying a value of more than $1 million.
Only the whale entities are capable of moving amounts this large with single transactions, so the Whale Transaction Count is assumed to correspond to the activity of these humongous investors.
When the value of the metric rises, it means the whales are making more moves on the network. Such a trend could be a sign that the interest around the asset is going up among this key cohort.
On the other hand, the indicator witnessing a decline suggests the large traders may be shifting attention away from the cryptocurrency as they are making fewer transactions.
Now, here is the chart shared by the analyst that shows the trend in the Whale Transaction Count for Bitcoin during the last few weeks:
As is visible in the above graph, the Bitcoin Whale Transaction Count slumped to a low level during the weekend, but following BTC’s price crash to kick off this new week, its value saw revitalization. At the peak of this spike on Monday, the whale transfers reached the 1,715 mark, a significant value.
From the chart, it’s apparent that the surge in whale activity has so far led into a recovery push for the cryptocurrency’s price. Thus, it’s possible that these large entities made their moves to capitalize on the price dip and helped fuel the rally.
That said, the indicator has cooled off a bit today, a potential sign that the whales may already be done with their accumulation. So, it only remains to be seen whether the recovery will last.
Something that could prove to be a bearish omen is the fact that ancient Bitcoin has just been involved in a transaction. As the chart shared by CryptoQuant community analyst Maartunn in an X post displays, 365 BTC dormant since 10 or more years has been moved on the network.
The amount itself isn’t too large in the grand scheme of things, but generally, ancient entities breaking their silence doesn’t tend to be a positive sign for Bitcoin, as it implies market conditions have forced even the diamond hands into selling.
BTC Price
Bitcoin saw recovery toward $81,000 yesterday, but the coin has since seen a minor retrace back to $79,700.
Featured image from Dall-E, CryptoQuant.com, Santiment.net, chart from TradingView.com
