- Buying sentiment was dominant in the Bitcoin market.
- BTC rose 3% last week and a few indicators were bullish.
After a price correction on January 3, 2024, Bitcoin [BTC] recovered quickly when the weekly chart turned green. While that was happening, the king of cryptos witnessed a massive rise in a key metric, reflecting investor interest in trading the token.
Does this mean another bull rally is in the making?
Bitcoin transitions are skyrocketing
The year 2024 started off well, but after just a few days, BTC witnessed a price correction, dropping its price to $42,200.
However, the coin was fast enough to make a rebound. From CoinMarketCapBTC has risen more than 3% in the past seven days.
When BTC recovered, it witnessed the largest spike in transactions. Ali, a popular crypto analyst, recently posted a tweet highlighting this incident.
He said BTC has experienced the largest spike in transactions above $100,000 in almost two years.
In the last 24 hours #Bitcoin saw the largest spike in transactions over $100,000 in almost two years.
The 16,900 major transactions serve as a proxy for $BTC whaling activity, which provides insight into how these major players might be positioned in the world #crypto market. pic.twitter.com/CCnaoBOK0F
— Ali (@ali_charts) January 5, 2024
He named,
“The 16,900 large transactions serve as a proxy for the BTC whale activity and provide insight into how these major players might position themselves in the crypto market.”
To check how whales reacted to this, AMBCrypto looked at Bitcoin’s statistics. We found that whale activity around the coin has actually increased in recent days.
Furthermore, a look at BTC’s supply distribution showed that whales were buying BTC, as evidenced by the slight increase in the number of addresses with more than 100 BTC (yellow line).
Source: Santiment
Is a new bull rally coming?
While the whales appeared to have accumulated BTC, AMBCrypto checked the otter stats to find out how retail investors were doing. According to our analysis of CryptoQuant’s factsBTC’s net deposits on the exchanges were low compared to the average of the past seven days.
This meant that the buying pressure on the currency was high. Furthermore, the currency basis premium remained green, meaning buying sentiment was dominant among US investors.
Source: CryptoQuant
With buying pressure high, AMBCrypto looked at BTC’s daily chart to better understand where a bull rally was lurking. Our analysis of BTC’s MACD showed that the bulls and bears were in a battle to reverse each other.
Read Bitcoins [BTC] Price prediction 2023-24
Interestingly, Bitcoin’s Chaikin Money Flow (CMF) recorded a sharp increase, which was indeed a bullish signal.
However, nothing can be said with certainty if both BTCThe Relative Strength Index (RSI) and the Money Flow Index (MFI) rested around the neutral line, which means trouble. At the time of writing, BTC was trading at $43,601.01 with a market cap of over $854 billion.
