Bitcoin Sets Another All-Time High at Over $29K, Key Indicator Suggests BTC Whales Not Looking to Dump

Bitcoin’s price has made yet another all-time high at over $29,200 in the past few hours. The last time Bitcoin reached a new all-time high was yesterday. Bitcoin is up by 3.6% in the past 24 hours, and over 23% in the past week. Bitcoin is also up by 640% since its lows in March when the COVID-19 pandemic emerged in many countries.

According to crypto on-chain analytics firm Santiment, while Bitcoin reached a new all-time high, the cryptocurrency also hit a three-year high in active addresses. While Bitcoin’s price was rallying, Ethereum also hit $750, which was a high not seen since March 2018. 

Santiment further noted that the amount of Bitcoin on exchanges are currently very low, which could mean that BTC’s price is still able to thrive. Santiment said:

“When tokens of an asset remain low, it's a good sign of prices being able to thrive. As $BTC prices have rocketed to new #ATH levels, this has clearly come to fruition.”

Bitcoin’s supply on exchanges remaining low could also indicate that BTC whales are not planning to dump the crypto anytime soon. 

Bitcoin’s on-balance volume (OBV) has been breaking upwards, and has been following a bullish channel, which could mean that the world’s largest cryptocurrency’s price could still surge. On-balance volume is a technical trading momentum indicator that gives insight into using volume flow to predict Bitcoin’s price. 

The cryptocurrency analyst Income Sharks further explained that volatility is not always a bad sign for assets. The analyst explained:

“Volatility is generally very bullish. It shows that there is demand and that there are active buyers. I worry more when price is flat and isn't moving (demand goes down).”

Tom Lee, head of research Fundstrat shared his view of Bitcoin’s price in 2021 recently on CNBC’s Fast Money, saying that Bitcoin would do better in 2021 than it did in 2020. He explained:

“2021 is going to be a lot like 2017, which means Bitcoin should do even better in 2021 than it did in 2020, so something above 300%.”

Lee further explained that the younger generation would prefer to hold digital assets such as Bitcoin as a store of value rather than gold in times of crises.