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Bitcoin wallet cohorts started accumulating BTC following Russia’s invasion of Ukraine. Whales transactions in Bitcoin hit the highest level as accumulation continues. Analysts are evaluating the Bitcoin price trend for signs of breakout.
Bitcoin whales transactions explode, 76.5% BTC out of circulation
Based on data from Glassnode, 76.5% of Bitcoin has not moved in the past six months. The concentration of unspent Bitcoin held by whales that purchased the asset ten years ago increased since 2020.
The number of Bitcoin transactions between $100,000 and $1 million have hit a peak, pointing to a surge in accumulation and reduction in the asset’s circulating supply.
Bitcoin accumulation is captured by The Bitcoin HODL waves chart from Glassnode, it shows the band of active supply by age. Each band shows the percentage of Bitcoin that was last moved in the given time period. The indicator is considered relevant in predicting Bitcoin’s next move.
Historically, Bitcoin accumulation by whales is indicative of an upcoming BTC price rally. The wallet cohort trend accumulation score by Glassnode is used for spotting a change in Bitcoin trend.
Large Bitcoin purchases by whale wallets at the end of January 2021 pushed the asset’s price 15% higher. A similar event could occur if whales keep up their ‘buy the dip’ strategy.
Currently, the indicator shows reasonably wide accumulation from September 2021 to February 2022.
Aggressive Bitcoin buying by small investors fuels uptrend
Bitcoin whale accumulation coupled with aggressive buying by small investors could fuel a Bitcoin price rally. Retail investors have been known to mirror whale’s buying behavior in the past.
Whale buying and accumulation could help Bitcoin bulls hold the asset’s price above $40,000 if dynamics from January and February 2022 remain unchanged.
Bearish concerns on Bitcoin price prevail while geopolitical tensions rise. However, if Bitcoin price remains stable with the $35,000 to $45,000 range, with horizontal correction, an uptrend is expected.
The post BTC On-Chain Analysis: Whales Scoop Up Bitcoin Aggressively, Traders Await Breakout Sign In BTC Price appeared first on CoinGape.
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