HODL Season Over: Active Bitcoin (BTC) Wallets Proved Early Warning for the Rally

Published on 2019-04-03 by Cryptovest Staff

As BTC prices marched ahead above the $4,000 level and as high as $5,000, wallet activity showed BTC owners were prepared to act.

About a day ahead of the rally that took Bitcoin (BTC) to as high as $5,307, the number of active wallets shower a pronounced growth. In general, wallet activity has been picking up for BTC in the past months, following the slump last December. Butactivitypicked up at the end of March, with more than 200,000 BTC wallets seeing transactions.

There are no hard-cut criteria on when BTC would rally. But recent Bloomberganalysis shows that this time, the rally may suggest a re-awakening of a multitude of holders who survived the crypto winter, patiently awaiting a rally.

BTC also saw an early-bird sign this March 24, whentransactionssuddenly picked up from recent lows. The Bitcoin network sees a rather volatile usage, with high activity coinciding with periods of active trading. Sending funds to and from exchanges means a spike in network activity.

Bitcoin mining is also highly active, nearing 50 EH/s, with expectations of additional growth in May. Prices above $5,000 are viable for a larger number of mining farms, and with expectations of $6,000 potentially possible, mining may keep growing.

But the robust network parameters do not guarantee a continued price strength, and are not to be seen as fundamental factors for Bitcoin. The $5,000 rally started to unravel on Thursday, with BTC prices dipping again under the $5,000 tier.

BTC slid to $4,953.51, as the rally lost its steam. Still, the reawakened markets have shown signs that the crypto winter may be over and volatility returns. BTC prices saw daily volatility that has surpassed the movements of the price in the past year. At one point, an order anomaly saw BTC prices as high as $10,000.

In the past months, a group of leading digital assets appeared which is seeing much more active inflows of funds. Top coins such as Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) are also getting a boost.