On-chain data shows Bitcoin whales holding between 1k to 10k BTC have expanded their reserves recently, a sign that could be bullish for the crypto’s price.
Recent Growth in Bitcoin Reserves of 1k-10k BTC Holdings
In a CryptoQuant article, an analyst explained that whales who hold between 1k and 10k BTC are known for their smart-money behaviors. They tend to sell at tops while buying near the bottoms.
This is the relevant indicator. It shows the current total coin holdings of the various holder groups on the Bitcoin market.
These investors are grouped based upon how many coins they have in their wallets. The 100-to-1k BTC cohort, for example, includes holders who have at least one wallet balance in that range.
Below is a chart showing the changes in reserves for the 100- to 1k BTC investors groups and the 1k-10k BTC investor group over the last year.
Source: CryptoQuant| Source: CryptoQuant
You can see that there has been some movement in the Bitcoin reserve for the whales of 1k-10k BTC.
It looks like this holder group’s reserve has usually started to fall off as the price of the coin has neared any local top.
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This cohort also bought at bottom formations. In other words, these investors behaved like smart money over the last year and half.
Recent data shows that the group’s reserve has seen a dramatic increase over the past few weeks. This suggests they may have been purchasing. If historical trend is anything to go by, such a sign could be bullish for the crypto’s price.
However, these smart-money investors have shown very different behaviour from the 100-1k BTC holders.
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These owners have typically bought during increases in price and sold when it dropped. Their reserve also has fallen in recent months, which suggests that they are selling at a time when the 1k-10k BTC whales were buying.
There could be another way of looking at it. Some holders may have bought enough bitcoin to make it over 1k BTC and are now part of the 1k-10k BTC cohort. This could explain why the reserve in the 100-1k BTC group is falling.
BTC Prices
At the time of writing, Bitcoin’s price floats around $31.3k, up 2% in the past week.
It looks like crypto's price has risen in the last 24 hours. Source: TradingView.| Source: BTCUSD on TradingView
Unsplash.com's featured image. Charts by TradingView.com. CryptoQuant.com chart.