Bitcoin whales have been actively accumulating within the past week due to the large price movements. Blockchain data shows that, just in February, 135 new wallets from whales with over 100 BTC were created. These are likely contributors to the swift recovery that saw Bitcoin rise back to $100K after dipping to $90K earlier this week.
Bitcoin Whale Accumulation Grows Amid Market Volatility
In the most recent period of volatility related to the Trump trade war, Bitcoin holders with large volumes have increased their accumulation. A blockchain analytics platform known as Santiment revealed the creation of 135 new cash wallets in February, which each hold over 100 BTC.
At the same time, many retail investors, especially those who began trading in the last 6 months, sold their assets in the recent price drop. The number of wallets containing less than 100 BTC declined by 138,680 in the month of February.
This change in Bitcoin ownership suggests that the most recent holders are not very strong and the older holders have more assets than them. According to Santiment, this particular phenomenon
Whales were accumulating while retail investors were selling – tends to occur before the bullish phase, for the time being, however, it may be weeks or months before any significant movement is observable. While there are people who believe that the Bitcoin rally is finished, the increase in accumulation by the whales say otherwise.
Bitcoin Finds Strong Support at $97,500 Level
Based on data from Glassnode’s Cost Basis Distribution (CBD) data, it appears that there was notable accumulation, with around 200,000 BTC purchased above the $97,500 mark.
As a result of this buying pressure a very strong support area has developed which has prevented additional price drops during two recent market declines last month.
At present, Bitcoin is retailing at the price of $97,601, while its daily trading volume has decreased by 35%, falling under the $47 billion mark. Liquidations for the past 24 hours have increased to $36 million, $23 million of which is on account of long liquidations.
Glassnode’s analysis states that the accumulation has aided in stabilizing the bitcoin price above $95K. This price is significantly higher than the short-term holder cost basis sitting at roughly $92K.
If the market price moves below $97.5K, the level of unrealized losses would rise considerably, thus increasing the downside risk due to worsened market conditions.
BTC Price Needs to Break Past $101 for A Strong Bull Rally
As per widely followed crypto analyst Rekt Capital, Bitcoin needs to jump above $101,000 so that a strong bull rally can initiate. He noted that Bitcoin is currently testing the support of its diagonal trendline, which is at the range of $98,000 to $101,000.
These price levels seem to be forming a potential higher low, and a sustained price at this range could allow for a retest of the resistance near $101,000.
Although the markets are still unsettled, inflows of Bitcoin ETFs have started coming back, indicating that the Bitcoin whales are active again. After the last year’s win in the US, large institutions like Blackrock are now trying to launch Bitcoin ETFs in Europe.
