The story hasn't been much different for bitcoin price this week, as the leading cryptocurrency has struggled to capitalize on its recent gains. According to data from CoinGecko, btc is down more than 3% in the last week, raising doubts about the continuation of the bull market.
However, the latest revelation about the chain has offered some relief, suggesting that bitcoin's value could recover substantially in the coming weeks.
Can Whale Accumulation Trigger Continuation of Bull Cycle?
Popular crypto analyst Ali Martinez revealed, through a publish to platform – that the number of bitcoin whales has seen a significant increase in recent days. This is based on the “Number of entities with at least 1000 btc balance” metric from on-chain analytics company Glassnode.
According to the latest data from Glassnode, the number of addresses holding at least 1,000 btc exceeded 1,510 on Thursday, January 18. This figure represents the highest level of the metric in more than 15 months (since August 2022).
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Chart showing the number of entities with at least 1,000 btc | Source: Ali_charts/X
Large holders, commonly known as “whales,” are considered relevant entities in the cryptocurrency market due to their ability to influence prices and market sentiment. Therefore, a noticeable increase in the number of whales often suggests growing confidence in a cryptocurrency (in this case, bitcoin).
Furthermore, this increase in whale addresses indicates potential accumulation among large investors and institutions. Acquiring large amounts of bitcoin is a positive sign for the market leader, especially in terms of price developments.
A recent report from Santiment adds strength to this argument, saying that further accumulation of bitcoin by whales would be a “key” factor in helping trigger another bull run for the flagship cryptocurrency and the entire sector.
Like him crypto?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#crypto The weekend begins, shark and whale levels for bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin & above #stablecoins stay slightly down:
10-10K bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin portfolios: 66.27% of the offer
100K-10M #Tie portfolios: 33.98% of the offer
100K-10M #currencyUSD portfolios: 35.49% of the offerVarious events can
(Continued) pic.twitter.com/qu6SqG4Qis
– Sentiment (@santimentfeed) January 20, 2024
The blockchain analytics firm also highlighted the accumulation of stablecoins Tether and USDC as a vital sign for the cryptocurrency market's return to its recent high.
bitcoin Price Overview
At the time of writing, the price of bitcoin stands at $41,593, reflecting an increase of 1.1% in the last 24 hours. However, this does not fully tell the story of the coin's performance over the past day as it briefly fell below $41,000.
According to data from CoinGecko, btc is down more than 5% in the last 14 days. The cryptocurrency has reversed all of its gains and more since the recent launch of spot exchange-traded funds in the United States.
However, bitcoin maintains its place as the largest cryptocurrency in the sector, with a market capitalization of more than $814 billion.
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-whale-addresses-hit-15-month-high" alt="bitcoin” width=”2174″ height=”1434″/>
bitcoin's price reclaims $41,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
