Since mid-March, the price of bitcoin has been below $61,062. In reality, the cryptocurrency’s price has remained relatively rangebound since then, ranging between $51,695 and $60,000. In other words, it has been more than 25 days since the crypto-asset reached a new all-time high, with the stock surge extending to coincide with an increase in massive purchases on the network.
About 85 percent of HODLers were profitable at the time of publication. What’s noteworthy here is that more than 25%, or one-fourth of the big HODLers, are still keeping Bitcoin in their portfolios.
Now, on 6 April 2021, Bitcoin’s network had the second and third-largest single transactions of the year. Two trades of 35,237 and 30,000 Bitcoins on the network represented the second and third-largest transactions in a single one-hour window of on-chain volume. The first move was to an address that kept up to 66,666 $BTC in 2019 but 0 in the previous four months. The tokens were then transferred, and a dormant address issued 35,237 tokens on the second switch, where they are now.
The intriguing question is, on whom do these whale transfers correspond? Whale transfers resulted in a market increase of more than 200 percent in 2019. Indeed, it is expected that the most recent whale transfers will lead to a rally to the $64,000 mark.
The graph above depicts the highest hour of Bitcoin on-chain volume since December 2020. The Derivatives Funding Rate for Bitcoin was another metric that pointed to a northbound rally.
According to the attached map, Bitcoin’s price will continue to rise. The funding average of +0.10 percent on BitMEX was similar to what was seen a few weeks earlier, with the latter bringing Bitcoin’s price back to its March high. Longs are fueling shorts, and this is also true at the existing funding levels, with rising liquidations across derivatives markets.
The increase in the funding rate indicates that retail traders are optimistic. Based on the existing funding cost, there is a higher chance of a market correction after a short-term top. However, based on sentiment and metrics, Bitcoin is expected to continue rallying towards its goal of $64,000.
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