bitcoin has surpassed the $28,000 mark as on-chain data shows key btc wallets have been accumulating over the past few weeks.
bitcoin Sharks and Whales Have Been Piling Up Over the Last Month
According to data from the on-chain analysis firm HolyLarge btc wallets have accumulated a combined $1.17 billion in cryptocurrency since the beginning of last month.
The relevant indicator here is the “Supply Distribution”, which tracks the total number of coins each cohort of investors in the market currently holds.
Holders or addresses are divided into these groups based on the amount of btc they currently have in their balance. The 1 to 10 coin cohort, for example, includes all investors who own at least 1 and at most 10 btc.
In the context of the current discussion, there are three groups of interest: 10-100 coins, 100-1000 coins and 1000-10,000 coins.
The following graph shows the trend in the supply quantity of these cohorts over the last six months:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Bitcoin-Surpasses-28000-Will-Sharks-and-Whales-Rally-Again.jpeg" alt="bitcoin Supply Distribution” width=”2706″ height=”1714″/>
looks like the value of the metric has gone up for all three of these groups | Source: Santiment on X
The largest of these groups includes the “whales,” who are among the most influential entities on the network due to the large amounts they own. The middle cohort is sometimes called “sharks” and these investors also have significant amounts, but their power is clearly less than that of the whales.
The smallest group, 100 to 1,000 coins, includes holders smaller than sharks and whales, but these investors still make up a notable segment of the market.
You can see from the chart that these three groups have participated in a net amount of accumulation since the beginning of September. In total, these cohorts have purchased around $1.17 billion worth of btc.
During the period these cohorts had been accumulating, the price of bitcoin was struggling to generate lasting bullish momentum, but these investors persisted and continued buying at low prices.
It looks like their accumulation efforts have paid off as bitcoin just saw a strong rally.
bitcoin has surpassed $28,000, but will profit-taking end the rally?
btc has seen strong bullish momentum over the past day as the asset managed to break above the $28,000 level for the first time since mid-August.
<img decoding="async" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Bitcoin-Surpasses-28000-Will-Sharks-and-Whales-Rally-Again" alt="bitcoin price chart” width=”1534″ height=”877″/>
The value of asset has shot up during the last 24 hours | Source: BTCUSD on TradingView
Santiment notes that a return to the $30,000 level looks increasingly likely. However, this will only happen if the key investors mentioned above do not start selling to take their profits here.
So far, these large forks have avoided any dumping, but it is unclear how long that will remain the case. It may be worth watching the holdings of sharks and whales, especially in the coming days, as their behavior may end up influencing where the cryptocurrency heads from here.
Featured image by Kanchanara on Unsplash.com, TradingView.com charts, Santiment.net
