Bitcoin May Lack Whale Support to Maintain Uptrend, Data Shows


Bitcoin (BTC) accumulation has been slowly increasing over the past few weeks and months, and as Finbold pointed out, the number of so-called accumulation wallets recently hit a new all-time high.

However, looking at the on-chain Bitcoin accumulation patterns against the price level of BTC, it is evident that there is a discrepancy between the number of holders with less than 1 BTC (small fish) and those with between 1 000 and 10,000 BTC (whales).

Notably, the shift in Bitcoin holdings since October 2020 has seen the number of small holders continue to increase significantly as whales distribute, as Underline by on-chain data platform Ecoinmetry March 12.

“Bitcoin whales and little fish… two different worlds right now. Small fish pile up like there’s no tomorrow while whales distribute themselves. Without the whales, I doubt there would be enough momentum for a sustained uptrend.

Accumulation of BTC. Source: Ecoinmetrics

Interestingly, with such a gap, the platform pointed out that without the acquisition and holding of the whales, it is not clear that there would be enough momentum for the flagship digital asset to continue its trajectory. ascending.

Accumulation of bitcoins

As mentioned earlier, accumulation wallets have reached a new all-time high, this was revealed by expert internet entrepreneur Lex Moskovsky on his Twitter on March 1, citing data from on-chain market analytics aggregator, Glassnode.

The increase in BTC accumulation. Source: Twitter

Accumulation wallet refers to bitcoin wallets that have seen activity lately but have not spent any BTC, with bitcoin accumulation starting in late February.

With updated information, Glassnode said the spike was caused by a large WBTC custodian generating new addresses and transferring reserves there, rather than a buildup of whales, which is generally seen as a huge buy signal. in the cryptocurrency market.

At press time, Bitcoin is changing hands at $39,192.47 up 0.29% and 0.38% over the past week, according to data from CoinMarketCap.

7-day BTC price chart. Source: CoinMarketCap

Currently, Bitcoin’s market capitalization is $743 billion with a 42.5% dominance of the overall market.


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