- Demand for Bitcoin is rising as whales take advantage of every dip to buy Bitcoin at a discount.
- Regardless, the SOPR indicator forecasts that BTC looks primed to retrace.
- While the on-chain metric forecasts an 80% correction, the $30,000 level could keep falling prices at bay.
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After doubling in less than a month, Bitcoin bulls have dominated the narrative. Though further gains are likely, a particular on-chain metric suggests that the top is near.
1,000% Rally Without Any Major Corrections
Bitcoin has enjoyed an impressive rally ever since the market crash in mid-March 2020.
Following a 54% correction, known as Black Thursday, the pioneer cryptocurrency entered a new uptrend fueled by the havoc that COVID caused on the global economy. Indeed, institutional investors have flocked to the market en mass looking for a hedge against inflation.
The significant increase in Bitcoin demand pushed its market value by nearly 1,000% since Mar. 13, 2020. BTC’s price went from trading at a low of $3,620 to make a new all-time high of $42,125.
The upswing was not entirely smooth since the flagship cryptocurrency suffered seven minor corrections that helped sidelined investors re-enter the market. As buying pressure increased in every pullback, BTC rose to make higher highs.
Most recently, Bitcoin experienced one of the largest one-day corrections since March 2020’s Black Thursday, shortly after surging to a record high of $42,125.
Its price plummeted by more than 26%, to hit a low of $30,450.
Some whales appear to have taken advantage of the downswing to add more tokens at a discount to their portfolios, as they have done in the past. The number of addresses holding 1,000 to 10,000 BTC surged by nearly 2% as prices tumbled.
Roughly 43 new mid-sized whales joined the network within a short period, helping Bitcoin regain the $35,000 level as support.