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Bitcoin whales have started accumulating more tokens after the cryptocurrency’s price dipped below $9,500. Historical data shows that affluent crypto holders are trading Bitcoin short-term to extract maximum profits. Now BTC is at around $8,800.
Ever since Bitcoin broke bearish below $9,500 on May 20, the demand for the biggest cryptocurrency amidst prosperous crypto holders has surged modestly. Cryptocurrency analysis portal Santiment reported data that showed a rise in Bitcoin build-up in wallets holding more than 100 BTC. The data aggregators saw that “Bitcoin whales” added another 12,000 BTC to their assets, which is equal to approximately $108 million at the current exchange rates.
Whales, in general, represent individuals who hold cryptocurrencies worth more than $1 billion. Traders generally turn to check their Bitcoin wallet balances to measure the market’s short-term sentiment. Knowing that, if the number of Bitcoin held in a whale’s wallet is increasing, then it signals a rising trend at a later stage. But if the quantity declines, then it shows a bear market.
Santiment noted that stronger Bitcoin holders had been recently showing characteristics of day traders. Their addresses show “a propensity to accumulate into dips and offload their bags slightly before short-term tops occur.”
This kind of attitude was perfectly clear after “Black Thursday” that happened on March 12 when the price of Bitcoin crashed from $7,969 to $4,346 amid a global market defeat. As the price eventually came down to a yearly low near $3,800, the significant downside move gave the possibility for whales to buy Bitcoin at cheaper rates.
Bitcoin Whales Selling Pieces of Their Wealth When Prices Peak
As a result, the balances in their BTC wallets rocketed by $500 million. This rise came after a thorough downtrend as the Bitcoin price recovered higher. That showed whales keeping more than 100 BTC sold a piece of their cake whenever price hit a local high. The balances started inclining together with a price ahead of Bitcoin’s third “halving” on May 11. They slipped once again after price tested $10,000 as its resistance limit but haven’t succeed to close above it. It showed that whales are still not willing to make their risk exposure above the said level.
However, a fall below $9,500 pushed forward their accumulation sentiment.
A $108 million buy order however is not big enough to convert Bitcoin’s bearish sentiment. Still, it shows whales are carefully calculating their risks in order to maximize their cash-based profits, especially among a worsening global financial crisis caused by the coronavirus outbreak.
The sentiment could push the Bitcoin price even more towards the top in the short-term. However, it still doesn’t have enough fuel to support a full-fledged rally as long as demand for cash remains higher.
According to Glassnode, during the last few weeks, the number of addresses holding at least 10,000-1,000 BTC decreased majorly.
The number of unique addresses holding at least 0.01 BTC rose to 8,478,746. Additionally, the number of addresses, which was at least 0.1 BTC, also noted a rise, climbing all the way to 3,053,004. This trend, of a rise in addresses holding a smaller amount of Bitcoin, was observed to have gained traction after BTC’s third scheduled halving two weeks ago. This pointed towards likely accumulation by retail investors.
In the meantime, miners that produce and validate Bitcoin blocks on its blockchain kept selling their BTC rewards after halving.
Twitter Bitcoin Mentions Seems to Copy Market Cap Dominance
Tweets including Bitcoin are far ahead of altcoins, but there are major correspondence between Twitter and market cap rankings.
According to the latest data, Bitcoin’s popularity on Twitter by the number of tweets is not only the highest of all the cryptocurrencies but also proportional to its market cap.
For May 26, Bitcoin tweets numbered 26,778. Tweets including six others – Ether (ETH), XRP, Litecoin (LTC), Tezos (XTZ), EOS and Chainlink (LINK) – came to around another 13,000.
Out of a total of around 39,000 tweets, Bitcoin’s share stands around 68%. According to the latest information, Bitcoin was down by 0.46% selling for $8,862.