Bitcoin price rises back above $30,000 as whales buy the dip
Wallet addresses holding between 1K and 10K Bitcoin have substantially ramped up their BTC accrual efforts over the past month.
- Bitcoin's share of the crypto market has slipped to a multi-month low of 40%.
- The digital asset's monthly losses currently stand at 26%.
- Searches related to the phrase "Bitcoin is dead" are at their all-time high.
Bitcoin has been rising recently after having slipped to a relative low of AUD$28,000 on 23 June. Over the past week, the digital asset's gains have risen to 3% while trading at AUD$30,500.
The ongoing price rise comes despite the market being quite volatile and exhibiting low levels of liquidity. On-chain data suggests that whales have continued to accumulate Bitcoin over the weekend, suggesting growing market demand. A market analyst noted:
"Unusual whale activity detected in Bitcoin. The supply held by entities with a balance of 1K–10K BTC just saw a huge spike in demand. Let's watch if the trend confirms."
Blockchain resource provider Glassnode revealed that ever since Bitcoin hit a low of US$17,600 earlier this month, large wallet holders have been lapping up the digital asset at a record pace.
In terms of where BTC is headed, crypto pundit Michaël van de Poppe stated that the digital currency needs to break the AUD$31,200 (US$21,600) threshold cleanly to forge some positive financial momentum for itself, adding:
"Standard weekend fake-outs happening and probably ending at CME close at US$21,100 for Bitcoin. No clear breakout above US$21,600 at this point yet."
Bitcoin's price data suggests that it is currently en route to recording one of its worst monthly drawdowns in its decade-long history. The currency has registered losses of almost 33% over the course of June till now.
What lies ahead?
In addition to whale accumulation, the number of Bitcoin wallet addresses holding 1 or more Bitcoin have also continued to rise. Between 15 and 25 June, the wallet addresses holding 1 BTC rose by 873.
While falling prices were viewed by many as a perfect entry point into Bitcoin, Google searches related to the term "Bitcoin is dead" jumped to its all-time high recently.
Even the cryptocurrency Fear and Greed Index, a popular metric for gauging consumer interest in the market, is currently hovering around the "extreme fear" zone, suggesting potential sell-offs in the near term.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.
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