On-chain data shows that the latest drop in Bitcoin price was accompanied by a surge in transaction activity from whale-sized addresses.
The number of Bitcoin Whale transactions just saw a spike
According to data from on-chain analytics firm Santiment, the number of Bitcoin Whale transactions has recently observed an increase. The “Whale Transaction Count” here refers to an indicator that measures the total number of transfers made on the BTC network involving a sum of $100,000 or more.
Typically, only whale entities are capable of moving such large amounts with single transactions, so the value of the indicator is considered to represent the volume of activity in which these huge investors participate.
Below is a chart that shows the trend in the number of Bitcoin Whale transactions over the past month.
Looks like the value of the metric has shot up in recent days | Source: Santiment on X
As the chart shows, the number of Bitcoin Whale transactions has seen high levels in June so far, with whales making 10,095 transfers daily. This indicator value is the highest since April 22.
Interestingly, this six-week high was accompanied by a sharp drop in the price of the cryptocurrency. Given the timing, it is possible that this whale activity corresponds to sales. However, because the Whale Transaction Count contains no information indicating whether accumulation or distribution is dominant, it is difficult to comment on whale behavior using trend alone.
The asset’s bearish price action resulted in CryptoQuant’s Bull Score Index falling, as highlighted by the analytics firm’s head of research, Julio Moreno, in an article. This indicator references data from popular BTC on-chain metrics to provide a view of the market in terms of a single score.
How the BTC Bull Score Index has changed over the last year | Source: @jjcmoreno on X
From the chart, it is clear that the Bitcoin Bull Score index had returned to the 50 mark during the previous BTC rally. A value of 50 implies that out of the ten indicators used by the Bull Score Index, five gave a green signal for the cryptocurrency.
But since entering this neutral zone, the market has reversed itself. The decline in the second half of May brought the indicator back into the bearish zone and now the decline in June has brought it to a value of only 10, which corresponds to extremely bearish conditions.
It now remains to be seen how long the asset will have to stay in this zone before a rebound can occur.
BTC Price
Bitcoin returned below the $67,000 level for the first time since early April.
The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView
Featured image of Dall-E, chart from TradingView.com
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