Bitcoin whales become more active

Bitcoin fell for the third straight day on Friday as war in Ukraine intensified and rising oil prices pushed the U.S. dollar higher. The major cryptocurrency fell nearly 4% and tested $41,000 level during the early European session. Despite negative sentiment recent on chain data suggests that market bulls are becoming more active. According to Santiment research, Bitcoin whales made transactions exceeding $1 million over the past three days, which is a sign that demand may be rising. 

For the first time in three months, there were 13,400 Bitcoin whale transactions exceeding $1 million in value. This is a bullish sign as in the past whale movements were usually followed by a price rally. Source: Santiment

Also approximately 590,000 Bitcoin tokens have moved out of exchanges recently, which points out that long-term holders are optimistic about the future of Bitcoin and are not willing to sell their holdings. 

The total amount of Bitcoin stored on exchanges declined from 2.64 million to 2.05 million over the past year. Source: Santiment

Bitcoin price rose sharply this week, however buyers failed to break above major resistance at $45,000 which coincides with 61.8% Fibonacci retracement of the upward wave launched in July 2021. Price pulled back to the local support zone around $41,000 which is marked with lower limit of the 1:1 structure, earlier broken downward trendline, 200 SMA (red line) and 50 SMA (green line). As long as the price sits above, another upward move may be launched. Source: xStation5