Since long, the buying patterns of Bitcoin whales have been a sign for market movements. It may not always happen, but the fact is that the top addresses hold enough supply of bitcoin to make a significant impact on the price. These movements have been associated with significant price shifts in the past. Once again, whales are exhibiting an accumulation trend which could signal a new bull rally.
Bitcoin addresses with 100K accumulate
Investors monitor the activities of bitcoin addresses holding more than 100K. It is possible for the funds to be enough to shift the needle more than one inch depending on whether these wallets sell or buy bitcoins. The wallets are accumulating, and the collective balances have reached an important point.
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Santiment, an on-chain analytics firm recently revealed that three Bitcoin wallets with more than 100K BTC had been growing their holdings over the last year. This group of wallets had a combined balance totaling 260K coins as of February 2013. They have now more than doubled the amount they hold. They have now added 664K BTC to their collective balance in a little over a year.
🐳 #BitcoinThe top 100k+ coin-holding addresses currently have 664k $BTCAfter sitting just 260k $BTCFebruary 2021. At the moment, there are 3 addresses that have at least this amount. These addresses were held an #AllTimeHigh693k $BTCJust before the price surge in June, https://t.co/VRMD1itWCL pic.twitter.com/V9bqIOrB6j
— Santiment (@santimentfeed) February 16, 2022
While this record is not new, it’s close to those of the three previous highest balances. The three wallets reached an all-time record 693K in June 2013 on their balances. This is still not broken.
How Important is This?
The market pull of these wallets is one thing that’s certain. This was mid-2021, when the market bottomed. The digital asset reached its local bottom at the time these whale wallets reached their record-breaking bitcoin holdings. A bull rally followed quickly, pushing bitcoin and other cryptos to new heights.
BTC's grounding is lost at $40K| Source: BTCUSD on TradingView.com
The balances of the wallets now stand at the same level. Bitcoin appears to have reached a new local bottom, with less than 30K BTC remaining to hit its prior high. This could mean that bitcoin is preparing to rally again towards an all-time high.
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Although this is a positive sign for Bitcoin, there are other indicators that point to more bearish trends. Bitcoin trades below the 20-day SMA but even then, it is not holding. The decline in bitcoin’s value is due to fewer investors willing to buy the asset at current prices. Bitcoin could soon be struggling to maintain its $39,190 support level if this trend continues.
Featured image taken from MARCA. Chart from TradingView.com