- Ecoinometrics research shows Bitcoin whales accumulation heat up.
- Simultaniously, small adresses move in unison and HODL.
- The inflow of Bitcoin to exchanges is at a month low.
YEREVAN (CoinChapter.com) – Accumulation among Bitcoin (BTC) addresses with large amounts of coin, aka whales, has heated up again. A report by an analytical platform, Ecoinometrics, shows that the high rate of HODLing could signal an upcoming rise in value for Bitcoin.
…the Ecoinometrics study was based on tracking the size of an address and its behavior depending on the price swing vector. The study’s ‘little fish’ addresses hold less than one BTC, and the largest ‘whales’ have 1,000 to 10,000 coins each. The platform examined the changes in both poles of the spectrum over the past three months.
As the infographic below demonstrates, the little fish ended June with a sell-off incentive (hence the color blue). However, they picked up the pace by the time July came around, and the accumulation rate hasn’t cooled off since (now yellow).
The whales, however, paint a different picture. The accumulation among large addresses was red-hot in late July when they “bought the dip.” Then, the HODLing gradually subsided and got cold by early September. Ecoinometrics study shows that the whales have started to pick up the pace once more, and the little fish are moving in the same direction.
The platform emphasized the importance of whales and small fish exhibiting the same behavior, calling it “typically good for Bitcoin.” For example, on the graph below, the activity of different-sized addresses and their behaviors color-coded depend on the degree of unison.
The cluster of red dots throughout August and September is a bullish sign for BTC.
Other bullish factors for Bitcoin
As mentioned, the accumulation statistic shows an incentive among big and small addresses to hold on to their Bitcoin.
The same tendency shows up in other on-chain metrics, such as the investigation of exchange inflow. Low inflow into liquidity pools shows the traders’ inclination to hold on to their digital assets for the long hall, expecting more gains.
The expectation of the gains does the trick and raises the value of an asset on the market. It is one of the reasons investors expect a price jump after the inflow into exchanges subsides.
Analytical platform Glassnode published the exchange inflow volume on-chain data on Friday. The results show that the metric has reached a month low of $44.9 million.
All the bullish metrics above suggest that Bitcoin could be heading towards a new portion up. As of writing, the BTC/USD pair traded at 47,729 in the Friday session.