Flow

2024

Bitcoin

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<ul> 
 <li style="font-weight: 400;">Buying sentiment was dominant in the market for Bitcoin.&nbsp;</li> 
 <li style="font-weight: 400;">BTC was up by 3% last week, and a few indicators were bullish.</li> 
</ul> 
After a price correction on the 3rd of January 2024, <a href="https://ambcrypto.com/search/bitcoin" target="_blank" rel="noopener" data-wpel-link="internal">Bitcoin [BTC]</a> was quick to recover as its weekly chart turned green. While that happened, the king of cryptos witnessed a massive surge in a key metric, reflecting investors’ interest in trading the token. 
Does this mean another bull rally is in the works? 
<h4>Bitcoin transitions are skyrocketing</h4> 
The year 2024 began on a good note, but just after a few days, BTC witnessed a price correction, pushing its price down to $42,200. 
However, the coin was quick enough to make a rebound. As per <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">CoinMarketCap</a>, BTC was up by more than 3% in the last seven days. 
When BTC was recovering, it witnessed its largest spike in transactions. Ali, a popular crypto analyst, recently posted a tweet highlighting this incident. 
He mentioned that BTC experienced its largest spike in transactions over $100,000 in nearly two years. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 In the past 24 hours, <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="nofollow external noopener noreferrer">#Bitcoin</a> experienced its largest spike in transactions over $100,000 in nearly two years. 
 The 16,900 large transactions serve as a proxy for <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="nofollow external noopener noreferrer">$BTC</a> whale activity, offering insights into how these major players might be positioned in the <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="nofollow external noopener noreferrer">#crypto</a> market. <a href="https://t.co/CCnaoBOK0F" data-wpel-link="external" target="_blank" rel="nofollow external noopener noreferrer">pic.twitter.com/CCnaoBOK0F</a> 
 — Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1743212782131060787?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="nofollow external noopener noreferrer">January 5, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
He mentioned, 
<blockquote>
 “The 16,900 large transactions serve as a proxy for BTC whale activity, offering insights into how these major players might be positioned in the crypto market.”
</blockquote> 
To check how whales were reacting to this, AMBCrypto took a look at Bitcoin’s metrics. We found that whale activity around the coin actually increased in the last few days. 
Additionally, a look at BTC’s supply distribution revealed that whales were buying <a href="https://ambcrypto.com/bitcoin-as-new-entrants-climb-is-btc-ready-for-a-price-hike/" target="_blank" rel="noopener" data-wpel-link="internal">BTC,</a> as evident from the slight rise in the number of addresses holding more than 100 BTC (yellow line). 
<div id="attachment_362320" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-BTC-11.55.41-06-Jan-2024.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-362320" decoding="async" class="wp-image-362320 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-BTC-11.55.41-06-Jan-2024.png" alt="" width="2560" height="867" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-BTC-11.55.41-06-Jan-2024.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-BTC-11.55.41-06-Jan-2024-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-BTC-11.55.41-06-Jan-2024-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-BTC-11.55.41-06-Jan-2024-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-BTC-11.55.41-06-Jan-2024-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-BTC-11.55.41-06-Jan-2024-2048x693.png 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a>
 Source: Santiment
</div> 
<h4>Is a fresh bull rally around the corner?</h4> 
While the whales seemed to have accumulated BTC, AMBCrypto checked otter metrics to find out how retail investors were doing. As per our analysis of CryptoQuant’s <a href="https://cryptoquant.com/asset/btc/summary" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">data</a>, BTC’s net deposit on exchanges was low compared to the last seven-day average. 
This meant that the buying pressure on the coin was high. Moreover, its coinbase premium remained green, meaning that buying sentiment was dominant among US investors. 
<div id="attachment_362321" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-BTC-1-3.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-362321" decoding="async" class="wp-image-362321 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-BTC-1-3.png" alt="" width="620" height="452" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-BTC-1-3.png 620w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-BTC-1-3-300x219.png 300w" sizes="(max-width: 620px) 100vw, 620px"></a>
 Source: CryptoQuant
</div> 
Since buying pressure was high, AMBCrypto took a look at BTC’s daily chart to better understand where a bull rally was around the corner. Our analysis of BTC’s MACD revealed that the bulls and the bears were in a battle to flip each other. 
Read <a href="https://ambcrypto.com/predictions/bitcoin-price-prediction" target="_blank" rel="noopener" data-wpel-link="internal">Bitcoin’s [BTC] Price Prediction</a> 2023-24 
Interestingly, Bitcoin’s Chaikin Money Flow (CMF) registered a sharp uptick, which was indeed a bullish signal. 
However, nothing can be said with certainty as both <a href="https://ambcrypto.com/can-bitcoins-q4-performance-set-it-up-for-a-favorable-2024/" target="_blank" rel="noopener" data-wpel-link="internal">BTC</a>’s Relative Strength Index (RSI) and Money Flow Index (MFI) were resting around the neutral mark, which spells trouble. At press time, BTC was trading at $43,601.01 with a market cap of over $854 billion. 
<a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/BTCUSD_2024-01-06_13-26-23.png" data-wpel-link="internal"><img decoding="async" class="aligncenter wp-image-362340 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/BTCUSD_2024-01-06_13-26-23.png" alt="" width="1564" height="791" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/BTCUSD_2024-01-06_13-26-23.png 1564w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/BTCUSD_2024-01-06_13-26-23-300x152.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/BTCUSD_2024-01-06_13-26-23-1024x518.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/BTCUSD_2024-01-06_13-26-23-768x388.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/BTCUSD_2024-01-06_13-26-23-1536x777.png 1536w" sizes="(max-width: 1564px) 100vw, 1564px"></a>

Bitcoin: Are market bulls back after latest price crash?

AMBCrypto

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