- This was the largest spike in BTC’s dormant supply movement in more than two years.
- Whales continued to add Bitcoin exposure to their portfolios.
Bitcoin [BTC] consolidated in the $64k – $67k range during the week, with firm resistance at $68k.
At the time of writing, the king coin was exchanging hands at $64.14k, down 12% from the all-time high (ATH) earlier this month, according to CoinMarketCap.
What can you expect next?
However, there may be a significant period of volatility in the coming days. According to AMBCrypto’s analysis of Santiment’s data, many previously inactive BTCs began moving between addresses on March 23.
In fact, this was the largest spike in BTC’s dormant supply movement in over two years.
Source: Santiment
Throughout much of 2023, dormant supply in the major age categories reached new highs, indicating a market strategy of caution and HODLing.
But as Bitcoin’s price rose to new highs in 2024, these long-term holders began chasing profits, freeing up more Bitcoins for active trading. Normally, a decline in dormant supply precedes volatility and price increases.
The current market structure supports price increases
Notably, most long-term holders were in a state of profit, AMBCrypto analyzed using Glassnode’s Net Unrealized Profit/Loss metric.
This market phase, also known as one of faith, has historically contributed to further price increases, as shown below. The market top, which is usually associated with euphoria and greed, was still far away.
Source: Glassnode
Whales continue to stockpile
Meanwhile, whales took full advantage of the suppressed market to add more Bitcoin exposure to their portfolios.
The number of unique entities holding at least 1k coins increased to 1,616 as of March 23, the highest since February 2021.
Read Bitcoin’s [BTC] Price forecast 2024-25
Interestingly, accumulation did not slow despite Bitcoin’s sharp correction from its peak, indicating belief in the crypto’s long-term price appreciation.
Source: Glassnode
Whales also showed their optimism in the derivatives markets. At the time of writing, almost 58% of all whale positions on Binance were long on Bitcoin, according to Hyblock Capital.
Source: Hyblock Capital