Investor interest in bitcoin has increased amid turmoil in the banking sector. A closer look at on-chain metrics shows that whales and long-term holders are now building positions for $30,000 BTC.
Since the recent profit-taking trend on March 7th, the average age of bitcoin consumption has dropped significantly.
Bitcoin Long-Term Holders Positioning for Higher Profits
Bitcoin has consistently traded above $27,000 for the past two weeks. It appears that recent turmoil in the banking sector has rekindled the interest of corporate and retail investors in bitcoin.
Signature Bank and Silicon Valley Bank suffered bank runs, while Credit Suisse, a 166-year-old Swiss bank, also got bailed out in March 2023 in a dramatic turn of events. Key on-chain metrics reveal how renewed investor interest could accelerate the ongoing BTC price rally.
According to blockchain forensics platform Sentiment, fewer long-dated tokens are currently being traded on the bitcoin network.
Since the recent spike of 24.58 months on March 7th, BTC edge consumed has decreased to 2.78 months as of March 27th.
The usage age represents the number of tokens that changed addresses on a given date, multiplied by the time frame when they were last moved. When age consumption value increases, it suggests that long-standing network participants are decoupled from the underlying asset. Conversely, a sustained decline, as seen above, indicates that long-term holders are increasingly banking on the future price potential of BTC.
Similarly, between February 9 and March 23, a strategic group of whales added nearly 100,000 BTC to their holdings, worth approximately $2.5 billion.
After taking profits around $22,500 on March 7th, it appears that whales have started accumulating positions for BTC to move higher.
Bitcoin whales typically possess significant financial power, and such prolonged accumulation trends can trigger price increases. And correctly looking at the timing history of the recent price rallies of the 100 – 1000 BTC whale cluster, BTC holders can expect more growth in the coming weeks if things stay the same.
BTC Price Prediction: All Eyes On $30,000
According to Global In/Out of Money (GIOM) data from IntoTheBlock, the next target for BTC is $30,000. GIOM shows the current distribution of holders along the lines of their average purchase price.
If BTC can break its current resistance around $28,000, it will face minimal resistance until it reaches $30,800, where 1.36 million addresses may try to take some profits on their 536,000 BTC holdings.
Nevertheless, if the $30,800 resistance fails to trigger a substantial correction, BTC could enter an extended rally. The next important resistance will be around $39,000, with around 5 million wallet addresses holding 2 million bitcoins.
However, if bitcoin price declines below $27,000, the bears could invalidate this bullish trend. If the $23,000 support where 4 million addresses bought 1.54 BTC fails to stop the price decline, BTC could drop below $20,000 once again. Around the $19,800 area, BTC will find another important support from 6 million addresses that bought around 3 million bitcoins.
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