Bitcoin whales slow down accumulation as BTC trades near $50K; dump ahead?

Bitcoin accumulation whale fish stablecoin
“Jumping Whale” by nestor galina is licensed under CC BY 2.0

Key Takeaways

  • Ecoinometrics research shows a halt in accumulation by accounts with large amounts of Bitcoin.
  • Simultaniously, small adresses act in contrast to the bigger ones.
  • A high level of stablecoins in exchanges shows a possible uptrend.

YEREVAN (CoinChapter.com) – Bitcoin (BTC) consolidated under $50,000 ($45,514) as whales, investors with higher exposure in the financial markets, slowed down buying the benchmark cryptocurrency.

Market analysis platform Ecoinometrics reported that the slow-rate accumulation could signal a sell-off ahead and a subsequent price decline for Bitcoin.

Accumulation halt

Ecoinometrics broke down Bitcoin holding addresses according to the number of coins they possess. The ‘little fish’ holds 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 30 days.

Little fish accumulation has heated up since June. It went from primarily sell-off-incentive to neutral. The whale accumulation, on the other hand, cooled off. It was red-hot in late July but turned neutral in late August. On the infographic below, that data is color-coded.

ecoinometrics

The larger addresses have more influence on the price action. Thus the cool-off in their accumulation might signify a price correction ahead. The research stated that Bitcoin’s value would benefit if small and large accounts would exhibit similar behavior.

However, the study results show opposite trends of accumulation. Both charts present a contrast in little fish and whale buy/sell triggers.

ecoinometrics bitcoin

Ecoinometrics points out that the overall trend is “not that bad” on a larger scale.

Also read: MicroStrategy stock falls 3.5% after it acquires $177M worth of additional Bitcoin.

Not that bad for Bitcoin?

The graph below shows the correlation between the price action and the accounts that accumulate the most. The blue end of the spectrum represents small addresses. The red end stands for whales or many groups of all sizes. As the price soared up towards $50,000 in early July, the little fish gave way to the bigger players.

However, the research claims that the whales have to pick up and start accumulating actively quickly. Otherwise, the “trend will start to weaken.”

eoinometrics bitcoin

There are some metrics in favor of the flagship crypto out there as well. For example, research by another analytical platform, CryptoQuant, shows a rising number of stablecoins in exchanges. The orange graph represents the Bitcoin price action over the past year. The blue one stands for the number of stablecoins in exchanges.

cryptoquant,

The stablecoin number hit its all-time high in late June has been consistently high since. It shows that traders are ready to exchange that stablecoin for other cryptos. Bitcoin has the highest daily trading volume of $32,9 billion.

Thus it would be reasonable to assume that traders could use the stablecoins in question to buy Bitcoin. If they do, the trading could push the BTC price higher.

The upcoming sessions will show if the whales pick up the accumulation pace and facilitate the price or continue the neutral phase and induce a dip. Moreover, the accumulated stablecoins in exchanges will likely serve the Bitcoin cause, which might raise the price. The BTC/USD pair traded at 45,514 in the European session Friday.

Also read: Bitcoin gains more powers as ETC Group launches the first BTC Futures product in Europe. Exclusive Report

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