Although Bitcoin has recovered to its $20,000 range and is trading slightly above the $21,000 level, the major cryptocurrency is still down 75% from its all-time high.
On the contrary, there are some positives around altcoin trading. Altcoin price movements around the crypto space paint a bullish outlook for the crypto space.
Currently, Bitcoin is trading at $21,522 down 0.09% in the last 24 hours.
According CryptoQuant, a crypto trading data provider, activity in terms of altcoins has increased across most crypto exchanges. When on-chain data is taken into account, the environment around Bitcoin is not so attractive. It also indicates that there is a increased accumulation of whales In place.
After Bitcoin experienced a bearish pull for over a month, the flagship currency has now entered a recovery phase and is struggling to hold the range. However, this is not the reason for a peak in whale accumulation of altcoins.
Possible reasons for increased Altcoin activity
The first possible reason could be due to over-the-counter trade with other whales through guard services. The next reason for CryptoQuant is that whales open long or short positions where altcoins are used as security.
Meanwhile, upcoming altcoin projects in crypto exchanges and the liquidation of crypto hedge funds could also serve increased altcoin activity. However, these factors might not be the exact reason for an increase in altcoin buying, as whales are unlikely to deposit their assets in exchanges at these prices.
On the contrary, whenever there is an increase in the accumulation of altcoins, there is a strong possibility for a bottom. As Bitcoin price struggles to see a bull run and the crypto winter has not yet set in, the price of Bitcoin is expected to fall in the coming days. Nevertheless, the slight surge in the price of Bitcoin has given relief to altcoin investors.