In a phase of strong consolidation, the world’s largest cryptocurrency, Bitcoin (BTC), struggles to break free from its trading range below $26,000. However, a closer look at on-chain data reveals a fascinating trend: Bitcoin whales accumulate significant amounts of BTC during each price dip.
According to a report from Santiment, Bitcoin whales have amassed close to 60,000 BTC amid a recent correction of 10% over the past few weeks. This signals their confidence in the long-term prospects of the digital asset, even as it faces short-term price fluctuations.
Bitcoin Dominance Surges To 50%, Indicating Bear Market Sentiment
Simultaneously, Bitcoin’s market dominance has surged, inching closer to the 50% mark. This milestone comes after a recent crash in altcoin prices following a stern regulatory action by the SEC. This is the first time since April 2021 that Bitcoin’s dominance has reached such heights.
Historically, BTC dominance above 50% has often indicated bear market characteristics, suggesting investors are shifting their funds towards haven large-cap coins. A similar scenario occurred during the bear market in 2018 when BTC dominance exceeded 50%.
On-chain data also reveals an intriguing development: BTC miners have been actively moving their coins onto exchanges. These miners have transferred many coins in the past week, resulting in a noteworthy inflow of $70.8 million. This influx stands as the third-largest ever recorded, falling $30.2 million short of the highest inflow of $101 million witnessed during the peak of the 2021 bull market.
Meanwhile, leading crypto exchanges such as Binance and Coinbase have recently experienced substantial outflows. Data from Nansen reveals that multi-chain assets, excluding Bitcoin, worth a total of $2.376 billion have flowed out of Binance.Binance US experienced an outflow of $124 million, Coinbase saw an outflow of $1.787 billion, and Coinbase Custody noted an outflow of $739 million.
Last week, the entire crypto market experienced a significant slump following the SEC’s complaints, released Monday and Tuesday. However, the real downturn occurred on Friday when a massive sell-off occurred across various cryptocurrencies.
Looking ahead, Bitcoin is expected to continue trading within a support range of $25,000, with an upside resistance level of $26,100. Long-term BTC holders remain unfazed by the recent SEC action, confidently holding their supplies.
Related Reading: | Bitcoin Whale Emerge From Its 10-Year Slumber; Moves $37M BTC