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Bitcoin addresses with 1,000–10,000 BTC have begun currency accumulation.
Rich crypto investors are refocusing their attention on Bitcoin (BTC), which is aiming for a breakout move above $50,000.
Crypto-focused newsletter Ecoinometrics reported positive changes in Bitcoin holdings for addresses controlling 1,000–10,000 BTC. So, based on their increased account balances throughout August, Ecoinometrics detected a revived accumulation sentiment among “whales,” implying that wealthy investors saw the present Bitcoin price levels as appealing for placing optimistic bets.
Small fish – Bitcoin investors who own less than one Bitcoin — appeared to have the same sentiment. Ecoinometrics said that they have been acquiring Bitcoin since June and have absorbed the selling pressure from the whales over that time. Their purchasing enthusiasm coincided with a price surge to $50,000, a crucial psychological resistance level.
“Recently, there has been some on-chain divergence between small fish who are accumulating coins [and] whales who are offloading coins,” tweeted Ecoinometrics on Sunday.
“That’s not ideal [for supporting] Bitcoin’s price, but it looks like things are changing! Whales are ticking back up.”
Blockchain analytics platform Glassnode also reported a spike in buying sentiment among small fish. In detail, the number of addresses holding at least 0.1 BTC reached a three-month high of 3,231,069 on Monday, further validating the accumulation data above.
Meanwhile, Glassnode’s unspent transaction output (UTXO) data alert presented the $45,000–$50,000 range, wherein whales capitulated the most recently, as a strong support area.
“Over 1.65M BTC now have an on-chain cost basis within the $45k to $50k range,” the platform tweeted Monday, adding:
“The $31k to $40k zone is also home to another 2.98M BTC, indicative of large accumulation demand.”
Bitcoin holds above the “green wave”
As the Bitcoin market waits for a decisive breakthrough move above $50,000, the whale and fish alarm emerges.
Since Friday, the BTC/USD exchange rate has been stabilising below the mentioned resistance level. In doing so, the pair has also found temporary support at $47,000, which roughly corresponds to a 20-day exponential moving average floor (20-day EMA; the green wave in the chart below).
A break below the 20-day EMA has historically prompted traders to shift their downside objective to the 50-day EMA (now near $43,500). Rekt Capital, a popular market analyst, also provided an outlook, highlighting the levels around $43,500 as Bitcoin’s next support area.
— Rekt Capital (@rektcapital) August 30, 2021
Small fish have been continuously accumulating Bitcoin in the $40,000–$50,000 area, with no signs of a trend reversal in the preceding 30 days. Whales, on the other side, had a period of capitulation when Bitcoin fell into the $45,000–$50,000 level.