Bitcoin has been painting quite a picture after it spent the last few weeks consolidating- using its on-chain metrics. Now the highest-rated cryptocurrency has already hit its peak at a price of around $41,962 on the 8th of January. Ever since then, it has dipped to a range around the levels of $29,000 and $40,000. And this data has been referred from CoinDesk.
Bitcoin Is Gearing Towards Another Price Run
However, the increasing demands for cryptocurrency have led to a massive supply when there is a lull in the prices. Glassnode mentions that the current year has already seen close to 26,000 BTC already mined. In the meantime, the Grayscale Investment Trust has also gone ahead and received more than 40,000 BTC in the same time frame. The market has been perforated of its sell-side liquidity- with the coins being held on exchange addresses sliding further. Glassnode mentions that the bitcoin balance did fall through a wide spectrum of 2,349,040 last Monday- its lowest in the last two and a half years.
If that wasn’t enough, the estimated number of whale entities- singular clusters of addresses for the crypto wallet which are handled through a single network- have already jumped to around 2,218. The count did increase when the price consolidated even further. This is simply a sign of accumulation that shows no signs of stopping. Interestingly, investors also have the power to influence several of the trends in the market.
In the end, we can say that a deeper drop might be low if profit-taking is brought under consideration- with the usual average of the adjusted spent output of bitcoin falling to 1. This implies that the coins that are traveling between different investors no longer bear profit with them.
