3 upward trends in the bitcoin network that could cause price spikes

Three key indicators of bitcoin activity in the network show that this digital currency has the potential to expand its upward trend in recent days. Using this data, it is not possible to determine the new bitcoin price peak, but it is possible to assess the possibility of a price jump over the recent variable range.

According to CryptoGlobe, bitcoin whales have been accumulating this digital currency since the beginning of the Russian invasion of Ukraine. The availability of addresses with 1,000 to 10,000 bitcoins has increased by 8.3% since then.

Internal data from the analytical company Santiment show that the number of addresses with an inventory of 1,000 to 10,000 units recently reached 2,203 portfolios, the highest level in a year. The bitcoins in each of these portfolios are worth between $ 44.2 million and $ 440.2 million.

3 upward trends in the bitcoin network that could lead to a jump in prices
The red line of the graph shows the number of addresses with inventory between one thousand and ten thousand bitcoins.

According to the company, the inventory of whale wallets, together with the inventory of wallets containing between 100 and 1,000 bitcoins, “has always been an indicator and predictor of the movement of bitcoin prices in history.” In addition, other data suggest that the price of this digital currency may rise in the near future.

For example, with $ 2.5 billion in bitcoins withdrawn from digital currency exchanges, the inventory of bitcoins on these platforms reached its lowest level in three years. This shows that the price of bitcoin has the potential to rise “significantly”.

According to market experts, reducing the inventory of bitcoins in exchange offices may increase the price of this digital currency. According to Stefan Wellett, CEO of FRNT Financial, this decline could mean that bitcoin is ready for a bullish move. According to him, the increase in stocks of bitcoins at exchange offices also means that investors are preparing to sell.

3 upward trends in the bitcoin network that could lead to a jump in prices
Bitcoin inventory chart on centralized digital currency exchanges.

On the other hand, when traders move their bitcoins from exchanges and transfer them to their personal wallets, the supply of these centralized markets naturally decreases significantly. This shows that the price of bitcoin will increase if the demand for purchase increases.

Bitcoin has fluctuated in a certain range over the last few months and seems to be stuck in a narrow graphics channel. Despite the jump caused by the Russian invasion of Ukraine, the price of bitcoin recovered quickly and the digital currency re-entered the channel.

According to IntoTheBlock, traders withdrew about 15,000 bitcoins from trading platforms on March 22 alone. As of January 29, 1400, this is the largest number of bitcoins withdrawn from exchanges in one day. The last time this bitcoin was taken off the stock market, “its price increased significantly a little later.”

3 upward trends in the bitcoin network that could lead to a jump in prices
Net chart of bitcoin inflows and outflows in digital currency exchanges.

Another factor that has affected the price of bitcoin is the new policy of the Luna Foundation Guard. The foundation plans to increase its bitcoin reserves to $ 10 billion. To support its stable coin, the UST, the Luna Foundation has raised $ 2.2 billion so far and bought bitcoins with some of them.

Available data show that the Luna Foundation recently bought $ 125 million worth of bitcoins. The purchase of these bitcoins was made with the help of a multi-signature address belonging to the “Gnosis” protocol. The address, which previously transferred $ 125 million to Tetra for digital currency exchange Bainance, apparently turned the tetra into bitcoin on the spot.

The publication of 3 upward trends in the bitcoin network, which could cause price spikes, first appeared in the digital currency.

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