Large-Scale Bitcoin Whale Transactions Signal Bottom, On-Chain Data Shows


Following Russia’s invasion of Ukraine on Thursday, Bitcoin (BTC) fell below $35,000. Since then, however, the cryptocurrency has risen significantly and is currently trading around $39,000.

Notably, during this period, Bitcoin “whales” made a huge amount of trades in this range as prices bottomed out, according to Data of the Santiment behavioral analysis platform.

As a result, the number of transactions on the platform above $100,000 and $1 million peaked at their highest level in a month; Interestingly, Bitcoin whale trades hit their last high on January 24, just when prices were about to bottom out before rising again.

“As Bitcoin prices hit a low of $34.7,000 on Thursday’s war news, whales made MASSIVE trades. This is the largest transaction amount of $100,000+ and $1 million+ BTC since January 24, when prices jumped +15% the following week.

Bitcoin whale transactions. Source: Santiment

Why Bitcoin Whale Transactions Are Remarkable

Given that Bitcoin began to rally following US President Joe Biden’s announcement of sanctions against Russia, this suggests that the digital asset may have bottomed out with high profile players trading just below. the $35,000 range as a buying opportunity.

Bloomberg Senior Commodity Strategist Mike McGlone called the decline a “watershed moment” for the digital asset.

“I think this will ultimately be a very good buying opportunity in Bitcoin for longer-term traders. This is going to go down in history as a defining moment,” he said.

Additionally, Alex Mashinsky, CEO of Celsius Network, also said that the ongoing conflict between Russia and Ukraine acted as a catalyst helping Bitcoin establish a critical support level at $30,000.

On-Chain Analytics Absorption at $35,000

Additionally, Finbold reported earlier this month that analysis of the $35,000 zone shows it to be significantly higher than previous demand absorption zones. On-chain analytics platform Glassnode, in particular, said the $35,000 threshold is one that should be watched closely stating:

“Our zone here in this $35,000 area is much larger than what we’ve seen demand absorption here, so that’s something to pay attention to. We’ve seen the demand come in People are willing to step into that $30,000 to $40,000 range. He was defended at this point once again.

It is worth mentioning that the absorption has taken place again at this level, which is bullish for Bitcoin; the crypto market is starting to regain strength in the face of geopolitical changes.

Currently, Bitcoin is trading at $38,850.95, up 1.52% in the last 24 hours and down 2.93% from the previous week.

The flagship digital asset is now worth $736.9 billion, with a total market dominance of 41.7%, according to statistics from CoinMarketCap.

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