Next Bitcoin Bottom? Here’s What On-Chain Data Suggests

Even as Bitcoin hovers around $20,000, it appears that a bulk of the traders are waiting for the right buying opportunity. For the first time since June 24, Bitcoin had on Tuesday dropped below $20,000. This led to further speculation on potentially more drop in Bitcoin price.

On-Chain Data Shows Market Sentiment

As per on-chain data on CryptoQuant, it appears that a majority of traders are waiting for the next big drop in prices. However, the price anticipation looks to be for the short term opportunity.

In what appears to be a result of major selling activity, there is a strong upward trajectory in USDC reserves. The  uptrend, however, is not a result of any major inflow to the exchanges. The wait seems to be on for a suitable buying range.

Also, it is largely short term traders who are selling Bitcoin currently. A majority of those selling are part of a range between 6-12 months from holding Btcoin. “The 6-12 months holders are the ones actively sending coins to exchanges.”

Whales Are In Wait Mode?

On-chain data also suggests it is not just small and average traders but big whales who are waiting for a good chance to accumulate cryptocurrencies. Interestingly, the Bitcoin holdings of whales is not increasing at the moment, data reveals.

This clearly shows the whales are waiting for a better opportunity. The holdings of whales with 100 to 1,000 BTC and 1,000 to 10,000 BTC is showing a flat line at the moment.

“Supply held by whales 100-1K #BTC and 1K – 10K #BTC is not increasing their holding. Are they waiting for a better opportunity?”

Meanwhile, Bitcoin is trading at just above $19,000, after dropping below the $20,000 mark again on Tuesday. As of writing, Bitcoin is trading at $19,077, down 4.50% in the last 24 hours, according to price tracking website CoinMarketCap. On a weekly basis, Bitcoin price is down by around 7.80%.