Wednesday, September 28

Bitcoin Whales Join ‘Little Fish’ In Buying BTC As Price Stays Above $ 47K


Wealthy cryptocurrency investors are turning their attention to Bitcoin (BTC) as its price continues to target a breakout move above $ 50,000.

Crypto Focused Newsletter Ecoinometrics reported positive changes in Bitcoin holdings for addresses that control between 1,000 and 10,000 BTC. So, based on the increase in their account balances throughout August, Ecoinometrics detected a renewed accumulation sentiment among the ‘whales’, suggesting that wealthy investors find current Bitcoin price levels attractive to make bullish bets.

Bitcoin accumulation trend versus price levels. Source: Ecoinometrics

The sentiment seemed the same among the minnows – Bitcoin investors holding less than 1 BTC. Ecoinometrics reported that they have been hoarding Bitcoin since June and, for a period, they have also absorbed the selling pressure coming from the whale side. Its buying sentiment coincided with a price surge to $ 50,000, a key psychological resistance level.

“Recently, there have been some divergences in the chain between small fish that are accumulating coins [and] whales that are downloading coins, “Ecoinometrics tweeted on Sunday.

“That is not ideal [for supporting] The price of Bitcoin, but it seems that things are changing! The whales are coming back up. “

Supporting data

Blockchain analytics platform Glassnode also reported an increase in buying sentiment among small fish. In detail, the number of addresses holding at least 0.1 BTC hit a 3-month high of 3,231,069 on Monday, further validating the accumulation data above.

Number of Bitcoin addresses with more than 0.1 BTC. Source: Glassnode

Meanwhile, Glassnode’s Unspent Transaction Exit Data (UTXO) alert featured the $ 45,000 to $ 50,000 range, in which the whales most recently capitulated, as an area of ​​strong support.

“Over 1.65 million BTC now cost on-chain within the range of $ 45,000 to $ 50,000,” the platform said. tweeted Monday, adding:

“The $ 31k to $ 40k zone is also home to another 2.98M BTC, indicative of high accumulation demand.”

Bitcoin UTXO performed price distribution. Source: Glassnode

Bitcoin remains above the ‘green wave’

The whale and fish alert comes as the Bitcoin market awaits a clear breakout move above $ 50,000.

Related: Bitcoin accumulation accelerates between ‘whales’ and ‘fish’, while BTC recovers to $ 40K

As it stands, the BTC / USD exchange rate has been consolidating below said resistance level since August 27. In doing so, the pair has also found tentative support above $ 47,000, which, more or less, has been coinciding with a 20-day exponential moving average floor (20-day EMA; the green wave on the chart below ).

BTC / USD daily price chart with 20-day EMA support. Source: TradingView.com

Historically, a break below the 20-day EMA prompts traders to move their target lower to the 50-day EMA (currently near $ 43,500). Popular market analyst Rekt Capital also presented an outlook highlighting levels around $ 43,500 as the next Bitcoin support range.

Minnows have racked up Bitcoin relentlessly in the $ 40,000 to $ 50,000 range, with no signs of trend reversals in the previous 30 days. On the other hand, the whales underwent a capitulation period when Bitcoin entered the $ 45,000 to $ 50,000 range.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you should do your own research when making a decision.