Investors of Bitcoin appear to be attracted to the $19,000 price range, as recent information indicates that nearly one million addresses bought 474,260 Bitcoin tokens at an average cost of $19,100. This large-scale purchase has established a strong base for BTC at this rate.
IntoTheBlock, a blockchain intelligence resource, noted today that the tokens bought are estimated to be worth $9.05 billion.
The platform emphasized that the buying behavior demonstrated a concentration of purchases around the $20,000 psychological limit, implying that buyers feel secure in acquiring Bitcoin when it is priced close to this mark.
The recent fall of Bitcoin beneath the $20,000 mark, which was first achieved on January 14th, has sparked concern that the bears may drive it even lower. IntoTheBlock is questioning whether this pattern will continue as they attempt to push the price down into the $19K region.
It is noteworthy that Bitcoin’s social activity has seen a sharp rise recently in the midst of the general market decline. Data from Santiment shows that conversations about the original cryptocurrency have increased significantly, and its social prevalence has reached its highest point since July 2022.
Messari’s data indicates a surge in active addresses, which rose to 929K over the past 24 hours, with up to 706K wallets accumulating additional tokens. Furthermore, crypto expert Seth recently said that Bitcoin is entering a new phase of accumulation.
The Prospects of Bitcoin and Decrease Below $20K
Analysts have attributed the recent market volatility to multiple factors. A CryptoQuant Quicktake report from Wednesday noted that the sharp decrease in prices last week was due to a sell-off from short-term holders and an increase in selling pressure from miners.
Despite this, it appears that a “cautiously optimistic” attitude is warranted regarding Bitcoin for several reasons. One of these is a reduction in whale expenditure, as large wallets are presently spending less than 150K BTC on a daily basis compared to 500K BTC during previous market downturns.
The research further showed that the concentration of whales owning BTC has gone up. This uptick in possession has led to an enormous cumulative stockpile for BTC whales, with their combined balance reaching levels not seen since November 2022.
Bitcoin has dropped 6.81% in the last 24 hours, being valued at $20,050 as of now. Maartun from CryptoQuant confirmed that the recent decrease in BTC prices is related to the negative announcements of Silicon Valley Bank and Silvergate.
