BTC and wBTC whales signal to HODLers: You should listen

• BTC and wBTC whales have been more active than usual in recent weeks as BTC prices continue to rise.
• Long-term owners have reached a breakeven point, signaling a strong bull trend, but a price correction may be imminent.

This week has seen a significant influx of Bitcoin [BTC] whale while the price of BTC continued its rise. Yet the growth in whale behavior did not occur with Bitcoin on the network alone, but rather with wrapped versions on other networks. The current upturn has also changed the playing field for long-term investors.

Read Bitcoins [BTC] Price prediction 2023-24

BTC and wrapped wBTC whales on the rise

Over the past few weeks, both BTC whales and Wrapped Bitcoin [wBTC] the whales have been more active than usual. According to Santiment, the number of transactions made by BTC whales had risen in recent weeks, and had passed 13,000 at the time of writing. The number of wBTC transactions has also grown in recent weeks, with over 100 of them at the time of writing.

Source: Sentiment

For BTC, the level of whale activity was at its highest point in the last 16 weeks. The number of whale transactions was also on the rise for wBTC, reaching its highest level in 15 weeks. Whale transactions are often transactions that total more than 100,000.

Understanding wBTC

wBTC is a cryptocurrency backed by Bitcoin. The purpose of wBTC is to enable Bitcoin holders to use their BTC to access decentralized finance (DeFi) applications and smart contracts on Ethereum [ETH] Network. To get wBTC, a user sends their BTC to a custodian who holds the BTC in reserve and issues a corresponding amount of wBTC on the Ethereum network.

The packaged version can then be used to access a wide range of DeFi applications, such as decentralized exchanges, lending and borrowing platforms, and other blockchain-based financial services. wBTC can also be traded for other ERC-20 tokens on the Ethereum network and as collateral for loans and other financial transactions.

Long-term holders can breathe a sigh of relief

According to a recent post on Glass nodeas BTC continued its upward trajectory and the number of whale transactions grew, the realized value of long-term holders also surpassed the breakeven point.

Source: CryptoQuant

This achievement was notable as it was the first time SOPR had achieved a break-even point since Terra [LUNA] collapse. At the time of writing, BTC was above 1.1 according to long-holder SOPR on CryptoQuant.

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BTC maintains a strong bull trend

The Relative Strength Index (RSI) indicated that Bitcoin was in a strong bull trend at press time. Looking at the price action on the daily period chart, the RSI line had risen above 70 and had entered the overbought zone. It had a gain of less than 1% at the time of writing and was trading at over $28,000.

Source: TradingView

Although the price was still on the upside and trading above the long and short moving averages (blue and yellow lines), a price correction may be imminent.