According to on-chain data, the numbers of Bitcoin whales holding 1k-10k BTC have increased recently. This suggests that crypto investors are accumulating it.
Signs of accumulation in the market are shown by Bitcoin UTXO Value Bands
A CryptoQuant analyst points out that there has been a lot of accumulation on the BTC market over recent days.
The relevant indicator here is the “UTXO Count Value Bands,” which basically tells us what percentage of Bitcoin wallets fall into which of the different value bands.
Here, the “value bands” refer to the number of coins held in the wallets. The 100-1k BTC group, for example, includes addresses holding anywhere from a hundred to a thousand bitcoins.
In this discussion the most important value group is the 1k-10k range. This chart shows how the UTXO Count has changed over time for the value band.
Source: CryptoQuant| Source: CryptoQuant
You can see that between June-September, the percent of Bitcoin wallets that have balances within the 1k-10k BTC region has fallen as shown in this graph.
However, over the last month the trend has changed, and now the indicator is showing some upward momentum.
It means that the whales are actively building up wealth and have been filling their pockets enough to gain access to this valuable band.
This chart shows the pattern of the metric in the lead-up to and during the run.
It appears that the Bitcoin UTXO Count was increasing in value during the period leading up to and including the bull run. The peak point occurred around the start of the bull market.
However, shortly after the bull hit its highest, the metric began to fall, suggesting that the whales were abandoning their coins.
The indicator’s latest trend upwards could be bullish, if the past trends are any indication.
At the time of writing, Bitcoin’s price floats around $20.4k, down 1% in the last week. The crypto’s value has increased by 6% over the last month.
Below is a chart showing the change in coin price over the past five days.
In the last days the cryptocurrency's value has fallen steadily. Source: BTCUSD at TradingView| Source: BTCUSD on TradingView
Image by Jaunathan Gagnon, TradingView.com charts, CryptoQuant.com