Bitcoin Bullish Signal: Whales Accumulate 84,897 BTC

On-chain data shows that bitcoin whales have accumulated 84,897 BTC during the past five weeks, which could be bullish for the price.

Bitcoin whales have been increasing their holdings recently

According to data from on-chain analytics firm EmotionWhen whales last accumulated like this, the price jumped about 34%. The relevant indicator here is “BTC supply distribution”, which tells us the total amount (as well as the percentage) of bitcoin supply that each wallet group currently holds in the market.

Addresses on the network are divided into these wallet groups based on the number of coins they are currently carrying in their balance. For example, the 10-100 coins group includes all addresses that currently hold at least 10 and at most 100 BTC.

Naturally, if the supply distribution is applied to this specific group, it will measure the amount of supply that wallets that meet 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 huge entities that carry a minimum of 1,000 BTC ($26.8 million at the current exchange rate) and a maximum of 10,000 BTC ($268 million) in their wallets. This means that the range of 1,000-10,000 coins is relevant here.

The chart below shows the trend of 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 shown in the graph, the bitcoin supply distribution for whale groups has seen an overall increase recently. During the past five weeks, these giant investors have added approximately 84,897 BTC to their holdings, which is worth approximately $2.2 billion.

In general, the behavior followed by whales can be something to watch, as their massive holdings mean they have the ability to create noticeable ripples in the market through their moves.

An example of this can be clearly seen in the chart. During and during the rally in January this year, whales displayed an accumulation trend and increased their supply to around 71,690 BTC.

By the time this accumulation occurred, the price of bitcoin had begun to rally and was up more than 34% by the time the whales slowed their buying pace. This trend highlights how buying pressure from this group could help propel the price higher.

Since the whales began their latest accumulation cycle, however, so far the price has only declined or moved sideways. But given that these holders are continuing to expand their holdings, it suggests that they see the current relatively low prices as a good buying opportunity.

It is unknown when this bullish confidence held by whales could translate into 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% over the past week.

BTC has moved sideways recently | Source: BTCUSD on TradingView

Featured Image by Vivek Kumar on Unsplash.com, Charts from TradingView.com, Santiment.net