- Bitcoin whales are back to accumulating the top cryptocurrency.
- BTC supply held by whales is much less compared to the April ATH rally.
- Whales creating supply shortage affects BTC/USD price.
PUNE (Coinchapter.com) – Bitcoin whales returned to their accumulation habits. The latest data shows that this accumulation trend has been going on for many months. An uptick in BTC coffer filling activity coincided with the top cryptocurrency’s potential run to $100,000 by 2021.
Whales Distributing Their Bitcoins
However, the BTC supply held by whales relative to small fishes (read less affluent Bitcoin holders) declined since 2012. Dor Shahar, an on-chain analyst who observed the Whale Supply Shock (WSS) trend, said it would reverse once whales start increasing their holdings.
“WSS will increase once more supply is held by whales, and therefore less supply is held by other fishes and vise-versa.”noted Shahar
Whales aggressively distributed their coins to the small fishes, Shahar observed. And that such depletion in whale BTC supply provides a fair estimate of the market top.
“Taking the last year as an example, we can see that around Feb of 2020 the supply held by Whales reached a peak. Right before the ATH whales has began to distribute their coins which was accumulated by other small fishes and indicated of an upcoming macro top & correction.”
According to the Bitcoin swing holder, the deep-pocketed BTC hodlers thought differently than their long-term holding (LTH) counterparts. As a result, whales depleted their Bitcoin stashes to time the market and predicted the end of an intermittent rally.
“The more knowledgable between us will notice that Whales are distributing coins in a more aggressive way and trying better to time the market top as compared to LTH. Therefore, WSS is giving a more sensitive and accurate signal for an upcoming macro top.”
But the ongoing whale trend points to accumulation.
Because BTC To $100,000
Despite numerous bearish attempts at pushing BTC/USD prices down, the flagship cryptocurrency held strong to the $60,000 support. The pair was trading within a Descending Channel formation since October 21, 2021, but neutral (50-60) relative strength index (RSI) numbers and local bottom sentiment brought back buyers.
Bitcoin broke out of the technical setup, which is otherwise considered bullish for major asset markets. The next upside target lies at $70,000. A close above the said resistance will open the doors towards $100,000. That will supposedly happen when RSI goes above 70, according to the BTC stock-to-flow model propounder PlanB.