The Bitcoin (BTC) price has experienced a minor rally ahead of Wednesday’s Federal Open Market Committee (FOMC) meeting.
Analysts opine that the prices have held relatively strong despite the aggressive outlook from the US central bank. The prices managed to reach over $18,000, and following the release of Consumer Price Index (CPI) data, it can be expected to be ready for a consolidation phase.
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
As per the Bitcoin price daily chart, the price was rejected at $18,220 and is expected to go through consolidation for now and look for a higher low. The support presently is expected to hold at $17,200 to $17,400.
Analysts studying the data from Santiment, an on-chain data provider, suggest that Bitcoin’s fundamentals are looking extremely strong. Santiment pays significant attention to the whale addresses, i.e., the ones holding between 100 and 10,000 Bitcoins, and are important indicators for future price trends.
Data reveals that whale addresses have spent $726 million in the last nine days in buying Bitcoin. Additionally, 159 new addresses holding between 100 and 10,000 Bitcoin have also been added. In total, 15,848 addresses currently hold 100 and 10,000 Bitcoin and about 43.46 million smaller Bitcoin addresses. The whale addresses account for 0.0364% of the total Bitcoin addresses.
Santiment marks this increase as the fastest growth in 10 months and, interestingly, at a time when the market has suffered through its lowest phase following the FTX bankruptcy. The chart below shows the behavior of the hodlers of BTC, USDT, USDC, BUSD, and DAI’s behavior.
In the chart, all the lines can be seen rising massively in recent times while the prices continued to fall.
Data suggest that the whale investors have been slashing their dumps for the past 14 months, declining the prices in lockstep; however, the signs of reversal can be finally seen.
“However, we may be seeing a turnaround now. Not necessarily with prices just yet… but at least with whales finally accumulating rather than dumping.”
Santiment, in its report, said that the Bitcoin metrics are just some of the ones experiencing a turnaround. The stablecoins have also experienced massive movement in the critical $100k to $10 million USDT while BUSD wallets’ worth moved from $100k to $10 million.
The key Tether addresses have accumulated $817.5 million (+7%) in the last three days, and BUSD key addresses have accumulated over $104.9 million (+9%). Hence, Santiment expects the coming weeks of 2022 to be bullish. However, factors, including crypto-intrinsic issues and macroeconomic headwinds, could affect it.
Todayq News reported earlier this month that the data from the SLRV ribbons also implied a bullish phase for Bitcoin in the coming times. The SLRV ratio’s values signify the percentage of Bitcoin in existence, the amount moved within the past 24 hours, and divides the percentage of coins last moved within the past six to twelve months.
High values of the SLRV Ratio signify that the short-term Bitcoin holders have become more active and are more engaged on the asset’s network. In December, the SLRV uptrend phase ribbon rose above its counterpart.