Analysis of Bitcoin On-Chain Data and Market Trends

The on-chain data within the Bitcoin network indicates a notable decrease in selling pressure on the price, leading to the initiation of accumulation by long-term investors once again post-December 2023. This development, perceived as a bullish signal by industry experts, was further validated by CryptoQuant CEO Ki Young Ju.

Drawing parallels between the current Bitcoin market activities and those of 2020, Ju highlighted the sustained high on-chain activity amidst a period of low price volatility. Noteworthy was the observation made by the prominent CEO regarding the emergence of new whale wallets engaging in daily purchases amounting to $1 billion, indicating significant accumulation efforts by whales.

Ju emphasized the striking similarity between the prevailing market dynamics in Bitcoin and those of the 2020 period. He underscored the continuation of trends reminiscent of the previous bullish cycle, heightening positive expectations for the market.

Throughout 2020, the accumulation phase and heightened activity culminated in BTC achieving a price milestone of $29,000 by the year's end, followed by an all-time high (ATH) of $69,000 in November 2021. The comparison drawn by Ju to the mid-2020 scenario, where Bitcoin stabilized around $10,000 for an extended period with intense on-chain activity, further reinforces the current scenario of high on-chain activity despite minimal price fluctuations.

The ongoing trend of significant daily increments in new whale wallets and their likely accumulation behavior portrays a familiar narrative that led to substantial price surges in the past.

Disclaimer: This article does not constitute investment advice.