Bitcoin Whales Activity is Reflecting Trends From 2020’s Big Bull Market

YEREVAN (CoinChapter.com) — Ki Young Ju, CEO of CryptoQuant, has highlighted a significant similarity between current Bitcoin market behavior and mid-2020 patterns. He noted an increase in blockchain activity and Bitcoin accumulation by whales despite low price volatility.

For instance, in 2020, Bitcoin’s price hovered around $10,000 for several months, with heightened on-chain activity attributed to over-the-counter (OTC) deals. Recently, $1 billion has been added daily to new whale wallets, indicating continued high blockchain activity.

Ki noted this trend on X, stating:

“Same vibe on #Bitcoin as mid-2020. Back then $BTC hovered around $10k for 6 months with high on-chain activity, later revealed as OTC deals. Now, despite low price volatility, on-chain activity remains high, with $1B added daily to new whale wallets, likely custody.”

Whale Activity Recorded Despite Stable Prices

As shown in Ki’s “BTC: Realized Cap for New Whales” chart, significant movements in Bitcoin wallets have been recorded. This substantial Bitcoin accumulation by whales suggests a sustained interest in the market, even though price volatility remains low.

One X user questioned if Bitcoin is “still a few months away from a breakout?” Others showed doubt, pointing out that the price isn’t “going up” even with the accumulation and ETF inflows.

Bitcoin Nears Key Resistance Level with Low Volatility

Crypto analysts have identified Bitcoin’s “last resistance” level at $69,000, a peak reached during the 2021 bull run. Current market dynamics show low volatility around these previous all-time highs. CryptoCon described this as “healthy price action,” noting the similarity to historical trends.

“You’re probably feeling pretty bored #Bitcoin right now, but that’s all part of healthy price action.

Using volatility, we can measure boredom in the market (lack of price action). We have now spent 42 days in the low volatility/boredom zone.

This is only half the time we saw in August – October 2023 which was one of the least volatile periods in Bitcoin’s history.

Noticeably, boredom periods are much shorter than excitement/expansion. These times of low volatility are crucial to build support for the next leg up.

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The current market activity shows a similar trend, with Bitcoin approaching a key resistance level.