3 Key Things to Watch for on Bitcoin as It Hangs Between $30,000 and Potential $25,000 Revisit

Santiment on-chain data agency has published its analysis of “a key trio to watch” for Bitcoin before it starts the next bull run. Currently, the price of the flagship cryptocurrency is drifting slightly above $27,300, and many are arguing whether it is going to retake $30,000 or revisit $25,000.

Three important metrics to watch for on BTC

The three crucial metrics the Santiment analytics team looked at are trading volume, circulation of coins and BTC wallet activity.

Santiment reminded the community that utility is important for analyzing the growth of a cryptocurrency’s market capitalization, the way the number of coins moved between wallets rises. Without the increase of this factor, price surges, even high ones, do not last long.

Santiment has shared the analysis of the three aforementioned metrics in the context of the three-month BTC rise that took place at the start of 2023.

After surging above the $25,000 level on March 14, the trading volume of Bitcoin faced a quick fallback. Once the BTC price surpassed $30,000, the trading volume went back to the lowest mark since the start of this year.

Contrary to trading volume, the number of unique wallets that interacted on the Bitcoin network showed a mild rise. As for previous bull runs, such as in 2020 and 2021, Santiment says, the amount of BTC wallets surged a lot higher than during the BTC rally this year. The number of active wallets has increased by 11% so far in 2023, while the price went up by 65%.

As for the circulation of BTC coins on the network, it does not look as cool as wallet activity. The circulation declined greatly after Bitcoin went down following a small rise in the middle of March.

The amount of BTC moved per day now is 6.4% lower in comparison to this number on Jan. 1; back then, Bitcoin was trading slightly below the $17,000 level.

📊 As #Bitcoin goes through tug of war to decide whether it revisits $30k or $25k next, @santimentfeed looks at $BTC‘s utility levels in our latest insight. Read how volume, circulation, & address activity are a key trio to watch before the next bull run. https://t.co/18G2hvvAQI pic.twitter.com/c8GmofuM8j

— Santiment (@santimentfeed) April 25, 2023

Bitcoin dormant whales are awakening

As reported by on-chain crypto tracker @lookonchain, over the past week, three dormant Bitcoin wallets awakened after nearly 10 years of being inactive. Collectively, they moved 8,199 BTC worth $225 million, most likely to sell.

The fourth wallet that was reactivated, however, contained a whopping 79,957 Bitcoin evaluated at nearly $2.20 billion now. When this address first received this Bitcoin 12 years ago, the coin’s price was only as little as $0.93.

Some $BTC whales that have been dormant for many years have woken up recently.

3 whales with 8,199 $BTC ($225M) have woken up in just 5 days.

And the giant whale with 79,957 $BTC ($2.19B) has been dormant for 12 years, the price when he received $BTC was only $0.93. pic.twitter.com/2MZPDc8UuW

— Lookonchain (@lookonchain) April 25, 2023

It is not only about Bitcoin wallets; several dormant Ethereum addresses that acquired ETH during the ICO have also awakened over the past week or two.