Key Takeaways:
- Wallets that possess large amounts of Bitcoin accumulated for the previous two weeks.
- However, the trend shifted, according to an analytical paltform.
- Bitcoin price action could be headed for more trouble in the coming week.
YEREVAN (CoinChapter.com) – Bitcoin (BTC) whales have been on the move for the past two weeks, taking advantage of the lowest BTC price. As a result of ‘buying the dip,’ the whales, i.e., large volume investors, have the highest supply per wallet than ever before.
WhaleMap, an on-chain whale monitoring resource, detected heightened activity among wallets with large amounts of BTC. Additionally, the platform indicated that whales hold approximately 330,000 BTC out of almost 19 million coins in circulation.
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Additionally, BTC concentration per whale has exceeded the October peak. According to analytical platform Glassnode, whales’ accumulation rate picked up since Jan 2022.
Whales cooling off?
Meanwhile, another on-chain metric resource, Ecoinomertics, confirmed the heightened whale activity.
However, it also detected a change of pace among large BTC wallets after two weeks of accumulation. The top right corner in the color-coded chart below shows that the accumulation trend has been weakening.
Additionally, the platform commented that Bitcoin needs a stronger whale incentive to “create momentum.”
The statistic above indicated an accumulation pace contrast between whales and smaller wallets. Those with between 1 thousand and 10 thousand BTC piled on more coins, while wallets containing below 1 thousand BTC didn’t bother.
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Additionally, retail investors with funds south of 1 BTC did not see the drop coming and accumulated right before the plunge, in Nov-Dec 2021.
Meanwhile, the flagship cryptocurrency traded at $36,478 on Feb 3, after losing the $38,000 support on Wednesday.
Bitcoin still bearish
Generally, whale accumulation could signify an upcoming price recovery. However, the alpha crypto flashed bearish signs that could take BTC lower than the $34,000 support it is headed towards.
In detail, Bitcoin has been trading in a Descending Channel since the mid-November peak. Moreover, the coin repeatedly retested both trendlines. Finally, BTC recently recoiled from the resistance trendline and headed for the $34,000 support.
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The Channel alone is not a predictor of any definite bias after BTC exhausts the formation. However, it can help determine short-time vectors.
If Bitcoin can’t hold the said support, the Channel could remain relevant, meaning a further 20% decline. Notably, the alpha crypto hasn’t seen price action below $30,000 since late July.
