Bitcoin at $60,000: What’s holding it back?

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After recent price corrections, Bitcoin has been able to re-establish itself on the charts and is already trading incredibly close to the $60k resistance level. Since slipping to $52k at the end of March, Bitcoin has been able to complete a full recovery in the last few days. However, if the market approaches the ATH, traders can be concerned about another price collapse if a sell-off occurs. The likelihood of such a situation is slim, but it cannot be completely ruled out.

Surprisingly, Santiment data revealed that whale trades valued at more than $1 million are now experiencing increased activity. Around a year ago, whale transactions saw around 229 transactions per day, but this number has risen dramatically, and at the time of writing, BTC was seeing around 1,930 whale transactions – a whopping 734 percent growth.

Although transaction and address behaviour is a positive indicator, it is also likely that whales will sell their BTC due to its current high value. However, this is not a big source of anxiety for BTC traders, owing to the reality that many of the coin’s whale addresses accumulated BTC even through the bull run, and the $60k price range will be too early to sell their coins considering Bitcoin’s current price trend and the fact that it could hit $100k by the end of the year.

Source: Glassnode

Furthermore, the volume of circulated supply that was last pushed more than ten years ago is seeing a spike in activity, according to Glassnode numbers. According to the table, active availability in the previous ten years stood at 2,024,764.179 BTC at the time of publishing.

Source: Glassnode

Understanding Bitcoin’s on-chain operation will also help you get a feel of the broader business mood. According to Glassnode’s entity-adjusted liveliness table, there are currently more coin days accrued than lost, implying that HODLing activity in the Bitcoin industry remains dominant. The report noted that balanced accumulation and destruction, implying HODLing, is growing and was particularly relative to the preceding uptrend, illustrating the market’s high hodl sentiment.

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Another key bullish indicator for Bitcoin has been the fact that exchange outflow has been increasing for quite some time now, with so little BTC remaining in exchange addresses. As traders move their coins into long-term storage, exchange balances have been consistently declining. According to Glassnode, over 3.27 percent of the circulating BTC supply has moved out of exchanges and into third-party wallets in the last year.

Although it will be enticing to sell and take short-term gains when BTC trades above $60k, the market is unlikely to cave in, and a price correction may not occur this time. At the time of writing, BTC has strong bullish traction and is expected to continue to break through its resistance as traders hope for accelerated market exploration past its ATH as Q2 of 2021 progresses.

 

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