New Bitcoin entities near all-time high as analyst heralds ‘positive whale activity’

The amount of BTC that can be stored in a single wallet is limited to 21 million. That means if you want to store a sum large enough to have an impact on the market, you need an organization that can keep growing.

According to data from blockchain analysis firm Elliptic, the number of Bitcoin-linked companies and entities has risen to nearly 2,000. Over 90% of these firms are registered as shells. The coins they own, however, are not.

Bitcoin (BTC) activity on the blockchain is dead, but indicators on the blockchain are overwhelmingly positive right now, says analyst William Clemente.

In the latest edition of Anthony Pompliano’s weekly newsletter, Clemente highlighted several indicators that show no reason to be bearish on bitcoin this month.

50,000 new Bitcoin entities per day

With BTC’s price unimpressive, there is no shortage of bearish predictions about bitcoin, and even the most well-known pricing models are being criticized.

According to Clemente, in terms of channel data, the situation is anything but bearish.

The growth in the number of new users is now at an all-time high, with more than 50,000 new entities per day, he concluded.

Graph of net growth of bitcoin structures 14-day moving average. Source: William Clemente/Glassnode.

These new structures could put pressure on the exchanges’ reserves, which have resumed their downward trend – nearly 18,000 BTC have left the exchanges’ portfolios in the past week alone.

Retail sales have been active for a few weeks, but now there is finally that long-awaited rebound, the report continues.

This week, 17 new whales were born on the blockchain, while the total volume of whales increased by 65,429 BTC.

According to Cointelegraph, whales have already been in the news for other reasons this week: A huge accumulation of short positions on the Bitfinex exchange caused a price drop that saw BTC/USD lose key support at $33,000.

In a broader sense, however, Clemente sees the current activity as an increase in positive whale activity.

Ignoring slow lock time

Elsewhere, the reason for optimism is the declining premium on Grayscale Bitcoin Trust (GBTC), despite upcoming unlocking events.

The hash rate has also stopped falling to its recent low of 83 hashes per second (EH/s), leaving only the number of transactions to consider.

Graph of Bitcoin’s average hash rate over 7 days. Source: Blockchain

Overall, activity on the blockchain is dead, as evidenced by the number of bitcoin transactions, Clemente acknowledged.

But there’s also a caveat here.

If I were developing a bearish scenario and forming my own opinion, I would use this particular chart; however, part of this pullback is likely due to people using the bitcoin network less because of the blockchain time lag, he believes.

Graph of the number of bitcoin transactions from the 14-day moving average. Source: William Clemente/Glassnode.

Related Tags:

btc whale accumulation chartbitcoin number of whales chartwhale alert chartcrypto whale investor appwhales selling bitcoinhow to track bitcoin whales,People also search for,Privacy settings,How Search works,btc whale accumulation chart,bitcoin number of whales chart,whale alert chart,crypto whale investor app,whales selling bitcoin,how to track bitcoin whales,ethereum whale chart,how to find crypto whales

Recent Articles

How to Buy Everex (EVX) | Step By Step Guide 2018

Everex is a platform that aims to bring the benefits of blockchain technology to emerging markets. With its own cryptocurrency, EVX, Everex allows users...

Visa and Worldpay Take Blame for Erroneous Charges on Coinbase

A recent report from the Wall Street Journal revealed that two of the largest payment processors, Visa and Worldpay, were responsible for erroneously charging...

Conflux Network Price Prediction – How Much Will CFX Be Worth in 2021?

Conflux has a bright future ahead of it. With the release of their new platform and the upcoming changes, we believe that this coin...

How Long Does it Take to Mine a Bitcoin?

Bitcoin mining is the process of making computer hardware do mathematical calculations for the Bitcoin network to confirm transactions and increase security. Mining is...

Siacoin Price Prediction for 2020, 2022, & 2025 – Crpyto Coin Society

Siacoin is a decentralized storage platform. The company’s goal is to provide a decentralized cloud storage network, which will allow users to store and...

Related Stories