The one-day to three-month Bitcoin HODL band has grown by 86%. However, according to experts, the 1-year HODL wave is likely to fade.
After dropping in value for four straight days, Bitcoin has made a shorter but relieved comeback from $26K to regain the $27K mark again. Previously, Bitcoin faced a significant bearish move as many on-chain indicators and US economic crisis pushed BTC towards a bearish movement.
The recent spike in Bitcoin trade volume, which has reached a stunning $15 billion, has piqued the interest of market participants. This enormous surge in trading activity raises concerns about the presence of whales, powerful players with large Bitcoin holdings.
According to Bitcoin's on-chain analytics firm Santiment, "sharks" and "whales," which refer to moderate and large holders, respectively, have collected Bitcoin since the market's peak in April. Let's see how this large volume will drive Bitcoin price.
Glassnode, an on-chain analytics service, examined HODL waves and discovered a wealth transfer.
"This suggests that wealth is being transferred from experienced holders to newer demand," it said. The company also indicated that it was a regular occurrence at cycle inflexion points.
In an astounding surge, the 1d-3m Bitcoin Realised Cap HODL Waves have skyrocketed by an astounding 86%. This increase represents a huge transfer of capital from seasoned Bitcoin holders to novice investors, which is frequent during cycle inflexion points.
The Realised Cap HODL Waves, which chart the distribution of Bitcoin's realised market capitalization over time, have increased significantly. Beginning with a cycle low of 11.5%, the waves have now reached an all-time high of 21.4%, highlighting the evolving picture of Bitcoin ownership.
Source: Glassnode | Twitter
Furthermore, a shift in the cumulative fees accrued per halving in Bitcoin denominated in the cryptocurrency itself has been noticed. The present Epoch has established a historic precedent by recording lower cumulative fees than the preceding Epoch, indicating a major departure from the long-standing pattern.
The significant decrease in fees can be ascribed to significant advances in transactional efficiencies, such as the widespread use of Segregated Witness (SegWit) and Transaction Batching during our current Epoch.
The data analysis demonstrates a dramatic discrepancy between the total fees accrued over different halving epochs. The numbers are as follows:
These figures demonstrate the declining trend of cumulative fees, with the current Epoch experiencing a significant decrease when compared to its predecessor. This extraordinary shift in fee dynamics indicates a significant gain in Bitcoin transaction efficiency during this particular halving cycle.
This will enhance the current network congestion in the Bitcoin network to smoothen the transfer and will optimise the whole block size limit of Bitcoin Blockchain.
Bitcoin (BTC) is currently trading at $27,127.67, with a 24-hour trading volume of $13,892,762,060. This is a 1.08% increase in the previous 24 hours and a 2.67% increase in the last 7 days. Bitcoin has a market worth of $526,021,503,414 and a circulating supply of 19 million BTC.
Bitcoin prices have now surpassed a number of critical long-term markers. According to Woo Charts, BTC is currently trading slightly over the 200-week moving average of $25,818. This was a historical level of support that was broken during the December cycle low.
In conclusion, The presence of a bearish engulfing candlestick formation below the 50-day exponential moving average indicates that the market sentiment is currently controlled by bears.
However, a trend reversal is possible as long as the price continues above the 26,600 level. In this case, we could see an upward trend with probable resistance levels at 27,300, 27,500, or perhaps 28,000.