Tag: Bitcoin Accumulation

Bitcoin Whales Wreck Bears, This Is What Happened Last Time They Were Active

by NEWSBTC

Bitcoin whales have become active once again. While whale activity is normal and to be expected, the rate at which they purchase and accumulate coins can point to further movement in the market. Given that these investors control a large enough volume to affect the price of bitcoin, watching their every move can be beneficial as shown bypass data.

When whales begin moving BTC in large volumes, it can either signal a market dump or pump. In the same vein, it can also who how big money is dealing with the digital asset. These addresses which hold 1,000 or more bitcoin on their balance have significantly impacted the market movement with their accumulation trend in the past. Now, again, they have begun to accumulate.

Bitcoin Whales Are Stocking Up

Santiment has reported that the bitcoin mega whales are coming out of their shells to stock up on more of the asset. These whales who hold at least 1,000 BTC on their balances have taken purchasing bitcoin at a rapid rate. Over the span of 7 days, these wallets have stocked up on more than 220K BTC, almost $10 bitcoin worth of the digital asset.

Related Reading | Bitcoin Settles Above $43,000, But What Does The 4-Year Cycle Say?

This comes at a time when the price of bitcoin had dipped and the market had plunged into extreme fear. This meant that a lot of investors were wary of putting money into the market. But not these whales it seems. In one of the most rapid accumulation trends, these whales have now added a combined 1.06% of BTC’s total supply in a little over a month.

Santiment notes that the last time a rapid accumulation trend like this was recorded was two years ago in December of 2019.

What Happened The Last Time Whales Accumulated?

As with any historical data, the accumulation of bitcoin by these whales has often had a profound impact on the market. Buying such a large amount of BTC in such a short period of time will no doubt have effects on the supply of the digital asset and by extension, the value of the asset.

Related Reading | XRP Price Surges – Is Ripple Winning The Fight Against SEC?

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As noted in the report by Santiment, bitcoin whales had done the same thing back on December 23rd, 2019. Now, this was a pivotal time for the subsequent bull rally as it had begun in the next year. A significant uptick was noted in the value of the asset following the rapid accumulation by whales. This had seen an uptrend that continued until the market entered a full-blown bull rally.

Bitcoin price chart from TradingView.com

Whales accumulate BTC before 2020 rally | Source: BTCUSD on TradingView.com

This is not to say that a bull rally is expected to immediately follow such an accumulation trend. However, it shows a strong correlation that a trend like this where supply is reduced helps to signal subsequent growth for an asset.

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Combined with market sentiment moving out of fear territory into the positive, indicators point towards a continued uptrend. Although only a break above $46,000 would signal that the bull has effectively been triggered.

Featured image from Bitcoin News, chart from TradingView.com

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30,000 Bitcoin Holders Lose Millionaire Status Following Market Crash

by NEWSBTC

Thousands of new bitcoin millionaires were added this past year after the multiple rallies the digital asset saw. At its peak, it only required 14.5 bitcoins for a holder to be a BTC millionaire, much lower than it had ever been in the past. Due to this, the number of bitcoin millionaires rose quickly and tens of thousands of new millionaires were added to the tally.

Now, however, with the recent price crash, a lot of bitcoin millionaires have lost their millionaire status. Given that the digital asset has lost almost 50% of its all-time high value, the number of millionaires has dwindled greatly in a short period of time.

There Are 30,000 Less Bitcoin Millionaires

When bitcoin hit its $69,000 all-time high, the number of bitcoin millionaires shot up quickly. For the first time, there were over 108,000 BTC millionaires given the low number of coins required to reach the millionaire status. All was well for a while and these 108,886 addresses kept their millionaire status. That is until the market crash that began in December 2021 and carried well into January of the new year.

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Bitcoin price chart from TradingView.com

BTC trending at $37,000 | Source: BTCUSD on TradingView.com

In the next two months, the price of BTC would suffer greatly and by extension, these bitcoin millionaires would be hit hard. This was exactly the case as about 30,000 BTC were no longer millionaires in the span of two months. At last count, the number of BTC addresses that held at least a million dollars worth of bitcoin had crumbled to 80,409.

Related Reading | ‘Bitcoin Rush’: Small-Time Solo Miners Strike Gold With Full BTC Blocks

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Bitcoin whales with larger balances also suffered due to the crash. These whales who held more than $10 million at the time of the peak were cut down by 40%. The number had fallen from its high of 10,587 to 6,960 as of today.

Who’s Holding? Who’s Not?

With any market crash, there will always be those who scramble to cash out their holdings due to fear of further downtrend. This has been the case with bitcoin. Liquidations did not help matters either as almost $1 billion in liquidations were recorded following the market crash. Nevertheless, there are those who hold their bitcoins through thick and thin, bear market or bull market.

Related Reading | Anthony Scaramucci Urges Bitcoin Holders To Think Long-Term As Downtrend Won’t Last

BTC still possesses one of the highest holder rates in the crypto space. More than half (59%) of all BTC holders have been holding their coins for more than a year, a very impressive number given that the digital asset had touched multiple all-time highs in the past year.

Holder sentiment still remains largely skewed towards bullish and accumulation patterns, especially among whales, are ramping up in recent times. Of the entire bitcoin in circulation, whales hold 10% of that supply. This number is always inching up as more big players enter into the market and try to hold a larger share than their competitors.

Featured image from Live Trading News, chart from TradingView.com

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Bitcoin Diamond Hands: Despite Recent Fear, Coins Aged 12-18 Months Rise To 2-Year High

by NEWSBTC

Despite the recent fearful market, Bitcoin hodlers show diamond hands as coins aged 12-18 months touch a 2-year high.

Coins Matured To 12-18 Months Revisit A High Not Seen Since 2 Years

As pointed out by an analyst in a CryptoQuant post, BTC hodlers have held strong recently as coins aged 12-18 months have seen a sharp spike recently.

The relevant on-chain indicator here is the Bitcoin Sum Coin Age (SCA) Distribution that shows the distribution of coins among the different holders in the market.

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The metric works by looking at each coin on the chain and measuring how many days it has been since it was last moved. Based on the age, these coins are put into different categories.

For instance, if a coin has been sitting still since 12-18 months ago, it is included in the 12-18 months holder group.

When the distribution of the long-term holders goes up, it means accumulation has been strong recently. Such a trend has usually been bullish for the price of Bitcoin as it shows a large number of holders refuse to sell at the current levels.

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On the other hand, when coins belonging to short-term holders move up, it means some long-term holders have decided to sell. This trend may be bearish for the price of the crypto.

Related Reading | Bitcoin Millionaires Are Flocking To This North American Tax Haven. But What Do The Locals Think?

Now, here is a chart that shows the trend in the supply of coins that have matured to 12-18 months (one of the long-term holder groups):

Looks like the value of the indicator has shot up recently | Source: CryptoQuant

As you can see in the above graph, the coins aged 12-18 months have sharply rose recently, reaching a 2-year high. The highlighted region in the chart is around when these holders bought these coins.

This means that these Bitcoin holders have now held strong through multiple all-time highs, the mini-bear period between May-July, as well as the recent fearful market.

Related Reading | Bitcoin Implied Volatility Plummets To Pre-Bull Market Levels: What This Means

Hodlers showing such diamond hands behavior can prove to be quite bullish for the price of the coin in the long term.

Bitcoin Price

Earlier today, Bitcoin’s price crashed below $40k, touching as low as $38k. Since then, the coin hasn’t recovered much yet.

At the time of writing the crypto’s price floats around $38.8k, down 7% in the last seven days. Over the past month, the coin has lost 17% in value.

The below chart shows the trend in the price of BTC over the last five days.

Bitcoin Price Chart

After weeks of consolidation, BTC's price seems to have finally crashed below the $40k level | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Bitcoin Miners Show Strong Accumulation As Their Inventories Spike Up

by NEWSBTC

On-chain data shows Bitcoin miner reserve has showed a sharp spike recently, suggesting that miners are currently loading up on the crypto.

Bitcoin Miner Reserve Shoots Up; Trend Of Accumulation From Last Year Continues

As pointed out by an analyst in a CryptoQuant post, the BTC miner reserve has shown strong uptrend recently. This seems to be a continuation of the accumulation trend from the last year.

The “miner reserve” is an indicator that tells us the total amount of Bitcoin currently stored in the wallets of miners.

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When the trend in the metric is towards up, it means miner inventories are growing as they stock up on more of the coin. Such a trend can be bullish for the price of the coin as it shows miners are currently accumulating BTC.

On the other hand, a downtrend in the indicator implies miners have started to dump their Bitcoin. This kind of trend is naturally bearish for the price of the crypto as miners usually sell in big amounts.

Related Reading | Why Sovereign Nation States May Begin Acquiring Bitcoin In 2022

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Now, here is a chart that shows the trend in the BTC miner reserve over the past couple of years:

Bitcoin Miner Reserve

Looks like the value of the indicator has showed sharp uptrend recently | Source: CryptoQuant

As you can see in the above graph, the miner reserve has been gradually moving up since May. A few days back, when the price of Bitcoin dropped down to $39k, the metric showed a huge spike up as miners bought the dip.

Related Reading | Jack Dorsey’s Block To Democratize Bitcoin Mining With Open Source Mining System

Miners have traditionally been big sellers in the market as they have had to sell some of what they mine to keep their operations running. However, as BTC’s price has risen, and their machines have gotten more advanced and efficient, miners have started selling lesser as it’s enough to sustain electricity and other mining costs.

Miners, who have originally always brought selling pressure to the market, have been shifting towards becoming hodlers for a coupe of years now. This can be quite bullish for the price of the coin in the long term.

BTC Price

At the time of writing, Bitcoin’s price floats around $42k, down 0.6% in the last seven days. Over the past month, the crypto has lost 10% in value.

The below chart shows the trend in the price of BTC over the last few days.

Bitcoin Price Chart

BTC's price plunges down after breaking above $44k | Source: BTCUSD on TradingView

BTC managed to reach as high as $44.4k in its recent move up, but today the crypto has once again come back down, erasing the gains of the past couple of days.

Featured image from Unsplash.com, charts from TraadingView.com, CryptoQuant.com

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Bitcoin hodling rate reaches 9-month high, boosting hopes of ‘bull flag’ rally to $70K

by Cointelegraph

A yearlong price rally in the Bitcoin (BTC) market and hopes for more upside moves in the future has prompted traders to hold the token instead of trading it for other assets, Glassnode data shows.

The blockchain data analytics service revealed Thursday that the total amount of “hodled or lost coins” reached a nine-month high of over 7.21 million BTC. In simple terms, the Bitcoin metric reflected an increase in out-of-circulation tokens — those that may have been stored in cold wallets by long-term holders or got lost due to human errors, with a minimum chance of recovery.

In simple terms, the Bitcoin metric reflected an increase in out-of-circulation tokens — those that may have been stored in cold wallets by long-term holders or whose private keys are lost forever for various reasons. 

BTC amount of HODLed or Lost Coins. Source: Glassnode

As a result, the total number of lost/hodled Bitcoin exceeded 34% of its total supply of 21 million tokens, making the cryptocurrency scarcer. 

More evidences of a Bitcoin supply shock

Further data provided by CryptoQuant showed that the amount of Bitcoin reserves held across all the crypto exchanges dropped to its lowest level since August 2018 — at 2.337 million BTC on Oct. 28, 2021.

Meanwhile, the Miners Position Index (MPI), which measures the ratio of BTC leaving all miners’ wallets to its 1-year moving average, has been treading below zero since March 6, 2021, suggesting strong accumulation among miners.

Bitcoin all exchange reserves and miners’ position index. Source: CryptoQuant

“The amount of Bitcoins [owned by miners] is on similar levels that were in May when the price was under $40k,” noted a CryptoQuant analyst as BTC attempted to rebound after falling below $60,000 on Oct. 26, adding: 

“You can see easily how early we are still before the final bulls run.”

What BTC price technicals say

Bitcoin’s price correction from around $67,000 to $58,100 appeared after October’s 60% rally. However, BTC/USD formed a parallel descending channel range (purpled), raising possibilities that the structure is a Bull Flag.

BTC/USD daily price chart featuring Bull Flag setup. Source: TradingView

Bulls Flags are bullish continuation patterns that send the price in the direction of their previous trend following a consolidation period to the downside. In doing so, the technical indicator eyes their upside targets at length equal to the size of the previous uptrend, also known as Flagpole, once the price breaks above the Flag’s upper trendline with higher volumes.

Related: Is Bitcoin price mimicking the 2017 bull run? Find out on The Market Report with ETF expert Eric Balchunas

The Bitcoin flagpole is approximately $15,000 long. That means the cryptocurrency could technically rise by as much as $15,000 from the point of the breakout. The Fibonacci levels in the chart above may work as floors to support rebound towards or above $70,000.

However, not all traders are convinced the current setup is bullish in the short term.

“Some would say this is a bull flag, and that’s possible. But the volume characteristics point to a move lower from here most likely imo,” commented pseudonymous crypto trader Alex. 

Fellow trader Pentoshi added that a break below the recent lows of $58,000 would be bad news for the bulls. He said:

“BTC off 58k to the dollar What if this is a big bull flag, and that we are in a bull market where bull flags break up? Now in theory price shouldn’t go back to those lows or Bitcoin is in trouble 64k down to 29k 29k back up w/ only 2 misses on the macro during that time.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.