Ever since the price of Bitcoin breached the $27,000 mark in the spring, many have been wondering when it will cross the $30,000 mark. Sadly, there has also been an increase in the number of transactions made by whales this month, which may make it difficult for Bitcoin to reach such high levels.
According to Santiment, a large transaction totaling 20,000 BTC occurred on March 31. Notably, this is one of the top five deals of the month. As a result of these recent transactions, BTC transaction volume in March reached its highest level in the first quarter of 2023.
🐳📊 The five biggest #bitcoin So far, 2023 transactions have all occurred in March, the most recent being 20,000 $bitcoin Transfer money today (worth about $564 million). Check out our latest insights into participating whale addresses and fluctuating whale supply. 👇👇 https://t.co/L14taXVvqo pic.twitter.com/KFX3bLgHwL
– Santiment (@santimentfeed) March 31, 2023
It is worth noting that whales exchanged Bitcoin in large numbers during the spring as the price of BTC rose in tandem. Additionally, while the number of whale addresses is steadily increasing, whale holdings are decreasing.
This dynamic suggests that Bitcoin price may have been affected by whale activity in March, and that the situation may continue to evolve in unpredictable ways.
In a chart looking at shark and whale holdings, Santiment shows the percentage of their BTC supply that has dropped since January.
Interestingly, the price of BTC rose from $18,000 to $20,000 during this period. The reduction in BTC supply indicates that profit-taking has started after the BTC price has risen.
However, throughout March, there was a slow increase in the number of active sharks and whales, as well as many hibernating whales/exchange addresses. This suggests that selling pressure is greater than the volume accumulated at the time of writing, which could exacerbate unpredictability and volatility in Bitcoin prices.
Bitcoin supply on exchanges reacted strongly to price action in March. Bitcoin supply on exchanges exploded from March 12 until March 22, when BTC prices experienced a slight downtrend.
This dynamic shows that when the price falls below a certain level, BTC holders are reluctant to sell because they want to take advantage of the high.
Bitcoin may struggle to break through the $30,000 price point easily due to increased profit-taking activity among BTC holders at higher prices. BTC may decline before recovering and may finally break the $30,000 resistance based on the current price trajectory.
- Why Bitcoin is the best bet against inflation
- Bitcoin is still in a “safe haven phase”
according to Kyptos