Bitcoin Bottom? Here Is What On-Chain Statistics Suggests

Even as Bitcoin hovers around $20,000, it appears that a bulk of the traders are waiting for the right buying opportunity. For the first time since June 24, Bitcoin had on Tuesday dropped below $20,000. This led to further speculation on potentially more drop in Bitcoin price.

On-Chain Data Shows Market Sentiment

As per on-chain data on CryptoQuant, it appears that a majority of traders are waiting for the next big drop in prices. However, the price anticipation looks to be for the short term opportunity.

In what appears to be a result of major selling activity, there is a strong upward trajectory in USDC reserves. The  uptrend, however, is not a result of any major inflow to the exchanges. The wait seems to be on for a suitable buying range.

Also, it is largely short term traders who are selling Bitcoin currently. A majority of those selling are part of a range between 6-12 months from holding Btcoin. “The 6-12 months holders are the ones actively sending coins to exchanges.”

Whales Are In Wait Mode?

On-chain data also suggests it is not just small and average traders but big whales who are waiting for a good chance to accumulate cryptocurrencies. Interestingly, the Bitcoin holdings of whales is not increasing at the moment, data reveals.

This clearly shows the whales are waiting for a better opportunity. The holdings of whales with 100 to 1,000 BTC and 1,000 to 10,000 BTC is showing a flat line at the moment.

“Supply held by whales 100-1K #BTC and 1K – 10K #BTC is not increasing their holding. Are they waiting for a better opportunity?”

Meanwhile, Bitcoin is trading at just above $19,000, after dropping below the $20,000 mark again on Tuesday. As of writing, Bitcoin is trading at $19,077, down 4.50% in the last 24 hours, according to price tracking website CoinMarketCap. On a weekly basis, Bitcoin price is down by around 7.80%.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.