bitcoin approached a retest of the $28,000 mark in the past day as on-chain data shows large investors have been piling into the asset.
Large bitcoin Holders Bought Ahead of Latest Price Surge
According to data from the on-chain analysis firm Holy, the number of btc investors with between 100 and 1,000 btc has increased considerably lately. The relevant indicator here is the “Supply Distribution”, which tells us about the total number of coins each investor group holds at the moment.
Investors or addresses are classified into these groups based on the amount of bitcoin they currently carry. Those holding between 1 and 10 btc, for example, are placed in the 1 to 10 coin cohort.
In the context of the current discussion, the 100-1000 btc group is the one in focus. At the current exchange rate, this range becomes approximately $2.78 million at the lower end and $27.8 million at the upper end. The investor segments belonging to this group are the sharks and the smaller whales.
Now, here is a chart showing the trend in the bitcoin supply distribution of this address range over the past few months:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Bitcoin-Retests-28000-as-Large-Holders-Accumulate.jpeg" alt="bitcoin Supply Distribution ” width=”2712″ height=”1785″/>
Looks like the value of the metric has shot up in recent days | Source: Santiment on X
When Santiment shared this chart, the supply distribution of this bitcoin pool had just recorded a sharp jump, implying that the combined holdings of these large investors had seen rapid expansion.
During this surge, the number of sharks/small whales in the sector grew by 16 in a 24-hour span, which is the largest increase the metric has seen in over a year and a half.
There can be two interpretations of this trend. Either there was accumulation by the smaller investors that led to them being promoted to this cohort or there was distribution by the larger groups that resulted in some of their members’ holdings falling into this range.
In the chart, Santiment also attached the data for the 10-100 coins group, which is the cohort just below this one. From their Supply Distribution trend, it is clear that just as the 100-1000 coin pool increased, this smaller pool experienced a drop.
This would seemingly confirm that the purchase did indeed take place in the market, as it was some of the 10-100 coin investors who bought and increased their holdings enough to become part of the 100-1000 coin group.
Interestingly, since this accumulation occurred, bitcoin has seen a rally towards the $28,000 level. Given the close momentum, it’s possible that this buying pressure has helped the cryptocurrency see this growth.
btc Price
bitcoin retested the $28,000 level at the peak of this rally, but has since pulled back a bit. However, if large investors continue to support the run in the coming days, the coin should rise again in the coming days and try to reach the mark again.
<img decoding="async" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Bitcoin-Retests-28000-as-Large-Holders-Accumulate" alt="bitcoin price chart” width=”1534″ height=”869″/>
The price of the coin seems to be trading just under the $27,800 level right now | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, Charts from TradingView.com, Santiment.net
