CryptoQuant CEO: “Bitcoin whales are doing the same thing again as in 2020”
Bitcoin is showing signs of whale accumulation, which is similar to the activity we have previously seen in 2020. This could indicate a future bullish trend as on-chain activity remains elevated despite relatively low price volatility. Are we going to get a similar scenario again as in 2020?
Comparison with 2020
CryptoQuant CEO Ki Young Ju emphasizes a pretty striking similarity between Bitcoin’s current market activity and that of mid-2020. His findings show relatively high on-chain activity and a sharp increase in Bitcoin’s accumulation, which for most investors of course echoes the 2020 accumulation phase that led to BTC rising to $64,000 by April 2021.
High activity, low volatility
In spite of the low price volatility Ki’s “BTC: Realized cap for new whales” comparison chart shows a significant move to BTC. While the pattern points to possible accumulation of BTC by whales and increasing market interest, analyst reactions to Ki’s findings vary.
Echo of 2020
In 2020, the price of BTC stabilized around the $10,000 mark for several months, seeing an increase in on-chain activity that was later attributed to so-called “over-the-counter” (OTC) deals, as Ki noted. This accumulation phase and high activity ultimately resulted in a BTC price of around $29,000 by the end of 2020.
Outlook for the market
According to cryptanalysts, BTC price is currently battling its “final resistance” at $69,000 before setting new all-time highs (ATHs) – peaking during the 2021 bull run. Despite community speculation, pseudonymous crypto analyst describes CryptoCon the current low volatility around previous ATHs as “healthy price action”.
