Bitcoin [BTC]: Path to $30k Faces Hurdles as Whales Power March Madness
March has seen the highest number of large transactions in 2023.
BTC whale activity in March could make it difficult for Bitcoin to reach the $30,000 milestone.
Since Bitcoin [BTC] surpassed the $27,000 mark in March, many wondered when it would reach the coveted $30,000 milestone. Unfortunately, this month also saw an increase in the number of massive transactions made by whales, which could make it difficult for Bitcoin to reach that new price range.
Data from Santiment revealed a substantial 20,000 BTC transaction executed on March 31. Notably, this transaction is one of the five largest transactions made during the month. These latest transactions have pushed March to become the month with the highest BTC transactions in Q1 2023.
It is worth noting that the rise of Bitcoin Whale transactions in March coincided with a simultaneous rise in the price of BTC. Also, while the number of whale addresses has been slowly increasing, the percentage of whale holdings has been on a downward trend.
This dynamic suggested that the whale activity in March may have affected the BTC price and that the situation may continue to evolve in unpredictable ways.
Bitcoin whales show mixed data
A recent Santiment chart examining shark and whale holdings revealed that whales were accumulating BTC through January. However, after January, their BTC supply percentage decreased.
Interestingly, the BTC price began its bullish trend during this period, moving from the $18,000 range to the $20,000 range. The decline in the percentage of BTC supply held by whales indicated profit-taking, which began after the BTC price increase.
Source: Feeling
Although the percentage of BTC held by the whales has decreased, the actual number of BTC held by the whales continued to rise. The total number of active sharks and whales and more inactive/address swapping whales has increased slowly but steadily throughout March.
However, the slow pace of this rise suggested that selling pressure was dominating the market compared to accumulation at press time. This can contribute to the volatility and unpredictability of Bitcoin price movements.