Bitcoin, the largest cryptocurrency asset, is currently at a standstill in the eyes of many investors considering current market factors. The cryptocurrency has traded between $41,000 and $45,500 for most of last week after recovering from a brief dip below $40,000 on January 23.
Although the price action was not very impressive, on-chain data showed that large holders were adding more money to their wallets, pushing the total number of wallets to a 15-month high. At the same time, holding patterns indicate that smaller whales are adding to their holdings to join the next round of retainers.
large holder accumulation
Looking at the increasing number of whale wallets, it seems that Bitcoin holders are making a move to boost the cryptocurrency. According to on-chain analytics platform Santiment, the number of Bitcoin addresses holding between 1,000 and 10,000 BTC grew by 47 more wallets, representing a 2.5% growth in six days. As a result, the number of addresses in this tier reached 1,958 on February 1, the highest since November 2022.
🐳 #bitcoin Prices range from $41,000 to $44,000, but whale purses are making big moves this week.
🔴 Number of 1K-10K $BTC Wallets: 1,958 as of February 1 (highest since November 2022)
🟡 Number of 100-1K $BTC Wallets: 13,735 as of February 1 (minimum after November 2022) https://t.co/MTOnjURnfV pic.twitter.com/QrxW8CH5c2— Santiment (@santimentfeed) February 3, 2024
Santiment data also shows a decline in wallet addresses in the lower tiers. That is, people holding between 100 and 1,000 BTC. The number of wallets in this range decreased by 1.1%, with a decrease of 154 addresses over the same period. As a result, the number of addresses in this tier fell to 13,735 on February 1, the lowest number since November 2022.
Bitcoin currently trading at $43,055 on the daily chart: TradingView.com
What does this tell us about Bitcoin?
While the accumulation of numerous large holders points to continued faith in cryptocurrencies despite the current consolidation, whale accumulation is just one of many market factors affecting cryptocurrency prices. Bitcoin price trajectory It may seem unclear right now, but the macro outlook suggests positive movement on a fundamental level. one of these is Recent capital flows of $1.7 billion It has been included in the Bitcoin spot ETF over the past 14 days.
According to cryptocurrency analyst Michael van de Poppe, Bitcoin’s current consolidation could continue for several months before the next halving. The analyst pointed out resistance near $48,000 to $50,000 and another correction near $36,000 to $38,000.
My general theory is: #bitcoin It is expected to be integrated in the coming months.
Final halving towards resistance at $48-50K, then a correction back to $36-38K. #altcoin It continues to outperform Bitcoin. pic.twitter.com/sYiqpg3T93
— Michael van de Poppe (@CryptoMichNL) February 3, 2024
From a different perspective, Justin Bennett, another popular cryptocurrency analyst on social media, said: Bearish Bitcoin Prediction In the near future. According to him, Tether’s dominance chart suggests BTC will fall further to around $30,000. This price range matches: Analyst PlanB’s The absolute Bitcoin price floor is $31,000.
Bitcoin’s 200-week moving average is 31,000. When Bitcoin price breaks out of 200WMA in accumulation (blue) and bull markets (orange/red), Bitcoin has never gone below 200WMA. So 31k may be the absolute bottom and Bitcoin may never see 31k again IMO. 200WMA is also rising… pic.twitter.com/3kqSbXWLjU
— Plan B (@100trillionUSD) February 3, 2024
At the time of this writing, Bitcoin is trading at $42,909.
Featured image from Adobe Stock, chart from TradingView
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