After a week of small price movements, bitcoin (btc) gained 0.50%, keeping its value within a consolidation range between $51,000 and $52,500. However, despite this period of inaction, bitcoin investors have maintained a consistent level of high accumulation, according to a observation by cryptanalyst Ali Martinez.
Interestingly, blockchain data analytics company Santiment has recently provided some insights into this trend.
In a February 23 post, Santiment reported that there have been 147 new bitcoin whale wallets (addresses with 1,000 btc+) over the last month, representing an increase of 7.4%. The analytics firm also noted that sharks holding between 1 and 1,000 btc and retail investors holding less than 1 btc have only declined by 0.1% and 1.0%, respectively, in the same time period.
bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoinhas various sizes #in chain Wallets have changed dramatically in the last 30 days as #ETFThey have become pillars.
1K+ $btc portfolios: 147 MORE (7.4% increase)
1-1K $btc portfolios: 1,237 LESS (0.1% drop)
<1 $btc portfolios: 509K LESS (1.0% drop)https://t.co/figQmv3vCh pic.twitter.com/4V7RZKYRce– Sentiment (@santimentfeed) February 23, 2024
Behind the high levels of bitcoin accumulation
Without a doubt, these aforementioned metrics indicate a high level of investor confidence in the most precious asset of cryptocurrencies; However, what could be the forces driving that optimism? One of the main contributors to the current high level of btc buying is the steady growth in the bitcoin ETF market, as also noted in the Santiment report. According to the market monitoring platform BitMEX Research, bitcoin spot ETFs have only recorded negative daily flow once in the last four weeks.
Such institutional interest may be encouraging, especially as most analysts predict that the development of the bitcoin spot ETF will result in massive demand for the underlying asset, which could result in such high prices.bitcoin-news/sec-approval-could-propel-bitcoin-to-new-heights-analyst-forecasts-150000-clearing-price/” target=”_blank” rel=”noopener nofollow”> up to $150,000.
<img decoding="async" class="alignnone size-large wp-image-576734" src="https://technicalterrence.com/wp-content/uploads/2024/02/Bitcoin-Accumulation-Levels-Remain-Strong-Amid-Price-Consolidation.png" alt="bitcoin” width=”860″ height=”730″ data-recalc-dims=”1″/>
Source: BitMEX
Furthermore, the long-awaited bitcoin halving event is another possible driving force behind the strong btc whale activity. This is because the halving event is generally expected to generate increased demand as a result of the block reward reduction effect, which reduces the supply of bitcoin.
More importantly, the halving event usually occurs months before the bull cycle, during which the value of btc could increase by 8 to 10 times its current value based on historical data. Therefore, many investors could be preparing to reap the expected profits.
btc Price Overview
At the time of writing, btc is trading at a market price of $51,585 with a gain of 1.54% in the last day. Data from CoinMarketCap shows that the market leader has maintained a good recovery arc over the past month, rising 28.96% during this period. However, btc is still 25.06% below its all-time high value: $68,789.63.
<img loading="lazy" decoding="async" class="aligncenter size-large" src="https://www.tradingview.com/x/nUe6whQp/" alt="bitcoin” width=”1480″ height=”893″/>
btc trading at $51,616 on the weekly chart | Source: BTCUSDT chart on Tradingview.com
Featured image from iStock, chart from TradingView
