Bitcoin Supply is Moving to Strong Hands amid BTC On-Chain Analysis Going Mainstream

Ever since Bitcoin (BTC) hit an all-time high (ATH) price of $69,000 earlier this month, the leading cryptocurrency has retraced, even falling below the psychological price of $60K. Bitcoin was hovering around $57,636 during intraday trading, according to CoinMarketCap. - 2021-11-26T163055.077.jpg

Nevertheless, this correction has not dampened the spirits of strong hands, investors who hold for future purposes, because they are accumulating more coins. Market analyst Will Clemente confirmed:

“Over the last two weeks, clear bullish divergence between BTC supply moving to strong hands and price.”


Bitcoin whales have also been on a buying spree based on the opportunity presented by the price grind down. On-chain insight provider Santiment noted:

“If you’ve been waiting for Bitcoin whales to show signs of accumulation, our data indicates it’s happening once again. In the past week, a total 59K BTC has been added to addresses that hold between 100 to 10K BTC. This is 0.29% of the total supply.”


Crypto analyst Ali Martinez echoed these sentiments and said:

“Whales are buying your Bitcoin. Roughly 30,000 BTC have left exchanges since the correction began on Nov. 8. That’s $1,710,000,000 worth of BTC.”


The demand for Bitcoin on-chain analysis is increasing

Bitcoin on-chain analytics was recently featured on CNBC, showing the growing demand for deeper crypto research. 

The on-chain analysis takes a different approach because it incorporates metrics created using cutting edge technologies like machine learning (ML) and artificial intelligence (AI) to get a clear picture of what is happening in the market. 

For instance, based on the Bitcoin cumulative on-chain transfer volume, approximately 6.9 billion BTC have been moved on-chain. Yassine Elmandjra, a crypto analyst at ARK Invest, stated:

“Since inception, 6.9 billion BTC have been transferred on-chain, settling ~$60 trillion dollars of cumulative value at the price of each transfer and ~$400 trillion of cumulative value at today’s prices.”


Nevertheless, it remains to be seen how Bitcoin ends the year because $100,000 is forecasted as the largest strike price for Bitcoin options in 2021. 

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Bitcoin is Moving to Strong Hands as Small Holders are Proving to be a Rising Force

Bitcoin has found itself in a swing position for more than two months now based on its stagnation in the $30-$40K range. This situation has been caused by low volatility and intensified crackdown on crypto mining by Chinese authorities. 

The battle between long-term and short-term holders has also played a part in their contrary positions in the BTC market. For instance, as long-term BTC holders kept on accumulating, their short-term counterparts continued selling, resulting in a stalemate.

However, on-chain analyst Will Clemente believes that Bitcoin is moving to strong hands given that its supply shock is at levels witnessed at the $50-$60K range.


Strong hands are investors who indulge in an asset for future purposes other than speculation. Smallholders are a rising force. According to crypto analyst Willy Woo:

“ Bitcoin continues a 12 year trend of distributing evenly. Small holders are a rising force.”


Therefore, smallholders cannot be ignored as they sold 428,749 BTC in May, and this is one of the reasons why Bitcoin nosedived from a record-high of $64.8K hit in mid-April. Moreover, on May 19, BTC shed off 30% of its value on a single day, making it go below the 200-day MA indicator for the first time since March last year. 

Bitcoin’s short-term interest declined by 43% from an all-time high (ATH) experienced in February, triggering low volatility in the market. 

As a result, crypto trading volumes in exchanges dropped by more than 40% in June. For instance, spot trading volumes fell by 42.7% to $2.7 trillion, while derivative volumes dropped by 40.7% to hit $3.2 trillion. 

With Bitcoin moving back to strong hands, it remains to be seen whether this jumpstarts the top cryptocurrency back to winning ways. 

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Bitcoin (BTC) $ 37,910.16 1.25%
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