According to the latest on-chain revelation, the Bitcoin network has experienced a steady decline in the number of high-value transactions in recent weeks. This sluggish activity is reflected by the price of the major cryptocurrency, which has struggled to break out of consolidation throughout the month of April.
Over the past week, Bitcoin price has struggled to stay above $67,000 despite hitting the level several times. The price of BTC has been in a slump since then, falling more than 2% in the past seven days, data from CoinGecko shows.
Interestingly, the recent on-chain data suggests that this disappointing price performance for the market leader could continue unless there is a turnaround, especially in terms of network activity.
Can Whale Activity Push BTC Price Above $73,000?
Prominent crypto analyst Ali Martinez went to the X platform to reveal that Bitcoin whale activity has steadily declined over the past six weeks. This revelation is based on Santiment’s Whale Transaction Count metric, which tracks the number of BTC transactions worth over $100,000 and $1 million.
Whales refer to entities or individuals that own significant amounts of a particular cryptocurrency (in this case Bitcoin). As such, they have a significant impact on market dynamics due to their ability to execute large trades, which can cause speculation and potential price shifts.
Martinez highlighted in his post that there has been a noticeable drop in Bitcoin whale activity since March 14, the same day the leading cryptocurrency hit a new all-time high price. $73,737. This dip in activity coincided with the recent underperformance of Bitcoin’s price.
However, the crypto analyst said that an increase in high-value transactions could revive the price of BTC. This is based on the reasoning that a surge in network activity could imply high demand for Bitcoin, leading to higher prices.
As shown in the chart below, the spike in whale transactions correlates with BTC’s new record high price.
Source: Ali_charts/X
Active Bitcoin Wallets on the Rise: Santiment
An interesting piece data about the chain That could indicate increasing demand for Bitcoin and a bullish future for its price has been revealed. According to Santiment, the number of active Bitcoin wallets is rapidly increasing despite the turbulent state of the market.
📊 The total number of non-empty #Bitcoin portfolios are growing rapidly despite turbulent prices. #Altcoin wallets for assets such as #Dogecoin have leveled off after the huge increases earlier this year. #Cardano is one of the few networks where the number of active wallets is declining. https://t.co/itg9qMes7c pic.twitter.com/yrOlEQw3jy
— Santiment (@santimentfeed) April 27, 2024
Active Bitcoin wallets refer to the total number of unique addresses holding BTC. Data from Santiment shows that the number of these “non-empty BTC wallets” has increased by more than 2.5% in the past three months.
At the time of writing, Bitcoin is trading just above $64,000, reflecting a 1.6% price increase in the past day.
BTC price breaks above $64,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView
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