- Bitcoin whale activity saw an uptick, which usually does not occur during this part of the cycle.
- The realized price gradient oscillator showed bulls need to maintain their momentum.
- Accumulation continued apace, while prices stagnated in April and the first half of May.
Bitcoin whales are accumulating rapidly, signaling potential bullish momentum despite recent price stagnation.
Bitcoin Whale Activity Increases Amid Market Stagnation
Bitcoin [BTC] was gaining bullish momentum as prices approached the all-time high. It saw a 4% pullback in the past two days that retested the $69k support zone. The technical indicators remained bullish. In a recent AMBCrypto report, the data highlighted that Bitcoin might be readying to embark on a 300-day bull run. The evidence at hand further reinforced the bullish bias.
The Realized Price Gradient Oscillator and Its Implications
Crypto analyst Axel Adler posted on X (formerly Twitter) a piece of on-chain analysis that highlighted the current momentum of Bitcoin and the values the gradient reached in the past 18 months. The price gradient oscillator measures how quickly the market cap grows compared to the realized cap. During the 2021 rally, as BTC neared its eventual top, the oscillator formed lower highs which indicated a fading bull trend. In 2024, the oscillator has formed a lower high at 2.96. Hence, a move past 3 would be desirable for bulls to avoid repeating the 2021 pattern, which would signal fading bullishness. At the time of writing, the oscillator reading was at 1.38.
Accumulation Continues Despite Price Stagnation
Analyst Willy Woo noted that the available Bitcoin was being scooped up during the past two months when the price lacked a true higher timeframe trend. This led to panic among retail holders, but the spot BTC demand was sizeable. The analyst believed that it’s only a matter of time before the prices climb past their all-time high against the US Dollar.
Rising Whale Activity: A Cause for Concern?
The exchange whale ratio saw a rising trend in April and May. This indicated increased whale activity, which is abnormal during a bull run. Usually, during the bullish long-term trend, whale activity quietens down. It picked up once the top was in and prices started sliding lower. The outflow from exchanges that Willy Woo highlighted earlier was a good argument against the top being in, but the rising whale activity can give investors pause. However, the exchange whale ratio is not definitive, and the evidence at hand shows this bull run has further to go.
Conclusion
In conclusion, the recent uptick in Bitcoin whale activity and the ongoing accumulation suggest that the market may be gearing up for a significant bullish run. While technical indicators like the realized price gradient oscillator show that bulls need to maintain their momentum, the overall sentiment remains positive. Investors should keep a close eye on whale activity and other market indicators to make informed decisions. The evidence points to a potentially extended bull run, but caution is advised given the mixed signals from different metrics.
