The cryptocurrency market has been experiencing a period of struggling prices and low momentum in recent times. However, recent data from on-chain aggregator Santiment suggests that large investors, known as “bitcoin whales,” are once again beginning to accumulate BTC. This accumulation trend could signal a potential movement on the horizon for the digital asset.
Large Bitcoin Whales Accumulate BTC and Hold 23.7% of Total Supply
According to Santiment, large bitcoin whales holding between 1,000-10,000 BTC are accelerating their accumulation. Over the past five days, these investors have added more than 20,000 BTC to their balances, representing a significant accumulation trend. As a result, these bitcoin whales now hold a total of 4.57 million BTC, or 23.7% of the total circulating BTC supply. This accumulation may have contributed to the recent recovery trend seen in the price of bitcoin.
This accumulation trend comes after a period of low activity among large bitcoin whales. According to Bitcoinist, large whale transactions fell to only 19% of total bitcoin transactions, indicating a lack of activity among these large investors. However, the recent accumulation data suggests a more long-term play on the part of these whales, and a willingness to buy at current levels. This could indicate that these large investors believe that the price of bitcoin may have reached its bottom.
Bitcoin Above $17,000: Price Movement Remains Precarious as Whales Accumulate
At present, bitcoin is trading comfortably above the $17,000 level, following a late weekend rally that pushed it above this important technical level. The digital asset is currently just above its 50-day moving average of $17,212, putting it in a precarious position. This means that the price of bitcoin could swing either way and that it wouldn’t take much to trigger a significant movement. While the accumulation of these large whales may have contributed to the recent uptrend, there needs to be more demand for BTC in order for it to continue moving upward and break above its 50-day moving average.
If the price of bitcoin were to fall below this level, it would still have support at $16,600, which could result in a loss of around $500 off its value. On the other hand, if momentum were to pick up, BTC could test the $17,500 resistance level before the end of the week. It is worth noting that at this moment, bitcoin is trading at $17,213, with a 0.06% increase in the last day and a 2.95% increase in the last 7 days.
Final Thoughts
The recent accumulation trend among large bitcoin whales could signal a potential movement on the horizon for the digital asset. While the market has been experiencing a period of struggling prices and low momentum, the accumulation of these large investors could indicate a more long-term play and a belief that the price of bitcoin may have reached its bottom. Nevertheless, there needs to be more demand for BTC in order for it to continue moving upward, and we will have to wait to see whether it can break above its 50-day moving average.
