The number of whales on the Bitcoin ($BTC) network, defined as wallet addresses holding 1,000 or more BTC, has fallen to its lowest level since August 2019, at a time when the flagship cryptocurrency’s price appears to be recovering last year’s fall.
According to data from crypto analytics firm Glassnode, first spotted by Decrypt, there were 2,027 whale addresses as of Feb. 19, compared to a peak of around 2,500 whale wallets in February 2021, when the flagship cryptocurrency’s price was near the $50,000 mark lay.
This week’s whale counts are the lowest since Aug. 5, 2019, when there were 2,023 whale addresses on the cryptocurrency network. Back then, BTC’s price was just above $11,000 after recovering from a year-long bear market that saw its value fall by over 80% from a high near $20,000.
Source: Glassnode
While the number of whales on the network has declined, the number of so-called megawhales, or addresses with 10,000 or more $BTC in their wallets, has continued to grow and now stands at 117. Its all-time all-time high was of 126 in October 2018 during the bear market.
When it comes to smaller addresses, those holding 1 BTC or more have gradually increased over time, although they have seen some dips from time to time. There are now over 980,000 wallets with more than 1 BTC on the blockchain, up from around 814,000 a year ago.
As CryptoGlobe reported, a popular cryptocurrency trader and analyst, who aptly named the May 2021 market crash, recently suggested that Bitcoin’s price has already bottomed and that its momentum suggests a rally is imminent.
The trader looked at BTC’s monthly moving average convergence divergence (MACD) to indicate that the cryptocurrency is preparing for a rally.
The MACD is a trend indicator that measures the difference between an asset’s 12-day and 26-day moving averages to form a line that is used to identify buy and sell signals. It’s an oscillator, meaning it fluctuates above and below a center line.
Previously, the head of $4.1 billion cryptocurrency hedge fund Pantera Capital, Dan Morehead, had predicted that this year will be one of rebuilding confidence in the space and that Bitcoin is now in its “seventh year”. bull cycle” occurs.
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