On-chain data shows that bitcoin sharks and whales have held strong despite the asset's rising price.
bitcoin sharks and whales have increased their holdings recently
According to data from the on-chain analysis firm x.com/santimentfeed/status/1828824189299761370″ target=”_blank” rel=”noopener nofollow”>Holybtc sharks and whales have been engaged in accumulation over the past month. The relevant indicator here is the “Supply Distribution,” which tells us the percentage of the total bitcoin supply held by a certain group of wallets.
Addresses or investors are divided into these groups based on the amount of coins they have in their balance at the moment. For example, the 1-10 coins group includes all wallets that hold between 1 and 10 btc.
In the context of the current topic, the combined group holding between 10 and 10,000 coins is of interest. At the current exchange rate, the lower end is equivalent to $598,000 and the upper end to $598 million.
This range includes some key investor groupsLike sharks and whales, which are considered influential entities in the market due to the scale of their holdings. Naturally, whales are the more powerful of the two, as they are larger. than sharks.
Given their position in the network, it may be interesting to monitor the behavior of these entities, as it can affect the price of the asset. One way to do this is through the distribution of supply.
Below is the chart shared by the analytics firm for the distribution of bitcoin investors' supply, which is between 10 and 10,000 btc.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/08/Bitcoin-sharks-and-whales-unfazed-by-price-drop-below-60000.jpeg" alt="bitcoin Sharks and Whales” width=”2559″ height=”1786″/>
The value of the metric appears to have been heading up in recent days | Source:x.com/santimentfeed/status/1828824189299761370/photo/1" target="_blank" rel="noopener nofollow"> Santiment on x
As the chart above shows, the supply of bitcoin held by investors like sharks and whales has been increasing recently. Over the past month, these investors have added around 133,300 tokens to their holdings.
This accumulation has not been interrupted by the latest btc drop either, as the supply distribution for the 10 to 10,000 coin pool continues to see a net increase. This would suggest that large investors are not particularly concerned about the bearish price action.
The coins these holders have been buying must have come from somewhere. According to Santiment, the source of the tokens are small investors (less than 10 btc) eagerly selling to large investors.
The recent confidence of sharks and whales is naturally a positive sign for bitcoin, but the indicator can still be monitored in the coming days. A reversal in its value could lead to a bearish outcome, as it would imply that key holders have decided to sell the asset.
btc Price
At the time of writing, bitcoin is trading around $60,100, down 2% from last week.
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Looks like the price of the coin has seen a plunge recently | Source: BTCUSD on TradingView
Featured image by Dall-E, Santiment.net, chart by TradingView.com
