Bitcoin [BTC]: Path to $30k faces hurdles as whales drive March madness

• March has witnessed the highest number of large transactions in 2023.
• BTC whales’ activity in March could make it challenging for Bitcoin to reach the $30,000 milestone.

Since Bitcoin [BTC] surged past the $27,000 mark in March, many have wondered when it would reach the coveted $30,000 milestone. Unfortunately, this month also saw a surge in the number of massive transactions made by whales, which could make it more challenging for Bitcoin to reach that new price range.

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A March to remember

Santiment’s data revealed a substantial transaction of 20,000 BTCs executed on 31 March. Notably, this transaction is one of the top five largest transactions made during the month. These latest transactions have pushed March to become the month with the highest BTC transactions in the first quarter of 2023.

🐳📊 The five largest #Bitcoin transactions of 2023 thus far have all happened in March, with the latest one being a 20,000 $BTC transfer today (worth ~$564M). Check out our latest insight on the engaged whale addresses and fluctuating whale supply. 👀👇 https://t.co/L14taXVvqo pic.twitter.com/KFX3bLgHwL

— Santiment (@santimentfeed) March 31, 2023

It’s worth noting that the surge in Bitcoin transactions by whales in March coincided with a simultaneous increase in the price of BTC. Furthermore, while the number of whale addresses has been slowly increasing, the percentage of whale holdings has been on a downtrend.

This dynamic suggested that whale activity in March may have impacted the price of BTC and that the situation may continue to evolve in unpredictable ways.

Bitcoin whales flash mixed data

A recent Santiment chart examining the holdings of sharks and whales revealed that whales were accumulating BTC until January. After January, however, their percentage of BTC supply held declined.

Interestingly, BTC’s price started its upward trend during this period, moving from the $18,000 range to the $20,000 range. The decline in the Percentage of BTC supply held by whales indicated profit-taking, which began after BTC’s price increase.

Source: Santiment

Although the percentage of BTC held by whales has dropped, the actual number of BTC held by whales was still on the rise. The total number of active sharks and whales and more dormant whales/exchange addresses has been increasing slowly but steadily throughout March.

However, the slow pace of this increase suggested that sell pressure dominated the market compared to accumulation at press time. This may contribute to the volatility and unpredictability of Bitcoin’s price movements.

Source: Santiment

BTC Supply on Exchange rise and fall with price

An analysis of the supply of Bitcoin on exchanges in March revealed a strong reaction to the uptrend in price. From 12 March onwards, the supply of Bitcoin on exchanges surged and continued to rise until March 22, when the price of BTC experienced a slight downtrend.

How much are 1,10,100 BTCs worth today?

This dynamic suggested that BTC holders were eager to take advantage of the high price range and were reluctant to sell once the price dropped below a certain level.

Source: Santiment

The recent surge in profit-taking by BTC holders at higher price levels may pose a challenge for Bitcoin to break through the $30,000 price range easily. Based on the current price trajectory, BTC may experience a drop in price before rallying and ultimately breaking through the $30,000 price resistance.