Bitcoin Bullish Signal: Whales Accumulate 84,897 BTC
May 18 2023 - 7:00AM
NEWSBTC
On-chain data shows the Bitcoin whales have accumulated 84,897 BTC
during the last five weeks, something that could be bullish for the
price. Bitcoin Whales Have Been Growing Their Holdings Recently
According to data from the on-chain analytics firm Santiment, when
whales last accumulated like this, the price jumped about 34%. The
relevant indicator here is the “BTC Supply Distribution,” which
tells us about the total amount (as well as the percentage) of the
Bitcoin supply that each wallet group in the market is holding
currently. The addresses on the network are divided into these
wallet groups based on the number of coins that they are carrying
in their balances at the moment. The 10-100 coins cohort, for
instance, includes all addresses that are holding at least 10 and
at most 100 BTC currently. Naturally, if the Supply Distribution is
applied to this specific group, it would measure the amount of the
supply that wallets satisfying this condition are holding as a
whole. Now, in the context of the current discussion, the Bitcoin
cohort of interest is the “whale” group. Whales are humongous
entities that carry at least 1,000 BTC ($26.8 million at the
current exchange rate) and at most 10,000 BTC ($268 million) in
their wallets. This means that the 1,000-10,000 coins group is of
relevance here. The below chart shows the trend in the Bitcoin
Supply Distribution for this particular cohort over the past year:
The value of the metric seems to have been on the rise in recent
days | Source: Santiment on Twitter As displayed in the graph, the
Bitcoin Supply Distribution for the whale group has observed an
overall uptrend recently. During the last five weeks, these
humongous investors have added around 84,897 BTC to their holdings,
which is worth around $2.2 billion. Related Reading: PEPE Unlikely
To Be As Big As DOGE & SHIB, Says Santiment Generally, the
behavior followed by the whales can be something to watch out for,
as their massive holdings mean that they have the potential to
cause noticeable ripples in the market through their moves. An
example of this can be clearly seen in the chart. In the leadup to
and during the rally back in January of this year, the whales
displayed a trend of accumulation and grew their supplies by around
71,690 BTC. While this accumulation occurred, the price of Bitcoin
started its surge and had risen by more than 34% by the time the
whales slowed down their buying spree. This trend highlights how
the buying pressure from this cohort can help the price go up.
Related Reading: Historical Crossover Suggests Ethereum (ETH) Top
Is In Since the whales have started their latest accumulation
cycle, however, the price has only declined or moved sideways so
far. But given that these holders are continuing to expand their
reserves, it suggests that they think the current relatively low
prices provide a good buying opportunity. It’s unknown when this
bullish conviction held by the whales might translate to the price,
but the trend could be a positive sign for the long-term
sustainability of the rally. BTC Price At the time of writing,
Bitcoin is trading around $26,700, down 2% in the last week. BTC
has moved sideways recently | Source: BTCUSD on TradingView
Featured image from Vivek Kumar on Unsplash.com, charts from
TradingView.com, Santiment.net
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