Bitcoin Whales Worth $3.8 Billion Emerge As Price Aims for $21k

In spite of macroeconomic challenges, Bitcoin has performed far better in the last few weeks than other traditional markets. Bitcoinist reports that Bitcoin gained strength yesterday.

As the US Federal Reserve sent rather hawkish signals during the FOMC presser, causing the S&P500 to plummet by 2.5%, BTC managed to hold above the psychologically important $20,000 mark.

Bitcoin Whales Stacking Sats

As the on-chain data indicates, whales may be responsible for the recent weeks’ performance. An anonymous analyst tweeted that 9 addresses have been added to the network with between 10,000 and 100,000 BTC since September 20. This has resulted in an estimated $3.8 billion worth of BTC.

Glassnode data indicates that there are now more than 104 addresses which hold over 10,000 BTC. The arrival of nine additional addresses in this regard is remarkable.

It is impossible to make any guesses about who or what the individuals are behind these addresses. So it’s not known if these are old friends or new investors in bitcoin.

These addresses are not complete addresses. Multiple addresses may be associated with one entity. However, one pattern has emerged in the last few weeks. Although demand has declined in Asia, American investors have begun to accumulate Bitcoin.

Coinbase’s Premium Gap (14DMA), shows that the majority of interest in Bitcoin has come from U.S. trader since July 28, 2022. The BTC price, however, has been fluctuating and falling repeatedly.

Bitcoin Coinbase Premium Gap
Coinbase Premium Gap. Source: CryptoQuant

Whalemap’s analysis revealed that whales bought Bitcoin in an amount between $19,000-$19,400 amplified. Whalemap estimates that whales have accumulated around 120,000 BTC in September, according to the analytics company. This should be considered the most reliable support.

At 19k, whales accumulate Bitcoin Source: Whalemap

Have the BTC prices bottomed out?

NewsBTC has learned that Glassnode (a top-ranking on-chain analysis firm) recently issued a report saying that many metrics point to a consistent conclusion that Bitcoin’s market is at its bottom. According to the research, the current numbers are “almost textbook” comparable to previous cycle lows.

A trusted indicator on the chain, NUPL (Netunrealized Profit/Loss), also suggests a bottom formation. NUPL is a measure of the net difference between realized profit and unrealized losses to see if the whole network is in profit or loss. Anonymous analyst statesThis is how it works:

What is the bottom of #Bitcoin? In the last 2 bear cycles, NUPL alerted market sentiment dropped from “fear” into “capitulation.” These 2 events marked the $BTC market bottom of 2018 & 2020.

As a result of the market sentiment’s drop from $30K and $17K, the current capitulation phase is underway.

According to TA a convincing move in Bitcoin will require a closing above the 7-week high just over $21,000

As of press time, Bitcoin’s price hadn’t yet reached $20.775 above the 100-day moving mean. The 200-day moving mean, a long-term indicator of trend, sits just below $24,200.

BTC USD chart
The 100-day MA is below Bitcoin. Source: TradingView

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