Bitcoin has recovered from its recent low as on-chain data indicates a notable increase in Whale Transaction Count on the network.
Significant Surge in Bitcoin Whale Transaction Count
As highlighted by analyst Ali Martinez in a recent post on X, whale activity surged during the recent price spike. The key indicator here is the “Whale Transaction Count” from the on-chain analytics company Santiment, which tracks the number of transfers on the Bitcoin blockchain valued at over $1 million.
Only whale entities are capable of executing transactions of this magnitude, making the Whale Transaction Count a strong indicator of activity among these massive investors.
When this metric increases, it suggests that whales are engaging more frequently on the network, potentially indicating rising interest in the asset among this critical group.
Conversely, a decline in the metric tends to indicate that large traders may be diverting their attention away from the cryptocurrency, resulting in fewer transactions.
Below is a chart shared by the analyst illustrating the trend in Whale Transaction Count for Bitcoin over the past few weeks:
The chart indicates that the Bitcoin Whale Transaction Count fell to low levels over the weekend; however, following BTC’s price drop at the start of the week, it experienced a resurgence. At the peak of this spike on Monday, whale transactions reached 1,715, which is significant.
From the chart, it is evident that the uptick in whale activity has contributed to a recovery trend in the cryptocurrency’s price. Therefore, these large entities may have acted to take advantage of the price dip, helping to drive the rally.
That said, the indicator has slightly diminished today, suggesting that whales may already be finished with their accumulation. It remains to be seen whether this recovery will persist.
A potentially bearish signal is the recent transaction of ancient Bitcoin. As the chart shared by CryptoQuant community analyst Maartunn on X illustrates, 365 BTC dormant for over a decade has been moved on the network.
While this amount isn’t particularly large overall, any activity from ancient entities usually signals a negative trend for Bitcoin, as it suggests that even long-term holders are compelled to sell due to current market conditions.
Current BTC Price
Bitcoin approached a recovery level of $81,000 yesterday; however, it has since experienced a minor pullback to $79,700.
