The holding pattern indicates that smaller whales have been expanding their holdings to join the next level of holders.
Bitcoin, the largest crypto asset, is currently stagnant from the point of view of many investors considering current market factors. The cryptocurrency mostly traded between $41,000 and $45,500 last week after recovering from a brief drop below $40,000 on January 23.
Although the price action has been disappointing, on-chain data indicates that large holders have been adding more to their wallets, raising the total number of wallets to the highest level in 15 months.
Big Holders Accumulate
It would appear that Bitcoin holders have been taking steps to boost the cryptocurrency, as indicated by the growing number of whale wallets. According to on-chain analytics platform Santiment, the number of Bitcoin addresses containing between 1,000 and 10,000 BTC saw an increase of 47 more wallets, representing a growth of 2.5%, in six days. Consequently, the number of addresses at this level reached 1,958 on February 1, its highest point since November 2022.
On February 3, Santiment posted the following on X:
“Bitcoin is ranging between $41K and $44K, but whale wallets are moving big this week:
Number of 1K-10K $BTC Wallets: 1,958 on Feb. 1st (Most since November, 2022)
Number of 100-1K $BTC Wallets: 13,735 on Feb. 1st (Least since November, 2022).”
Santiment data showed the decline of wallet addresses at the bottom level. That is, those who own between 100 and 1,000 BTC. The number of wallets in this range decreased by 154 addresses during the same time period, representing a decrease of 1.1%. Consequently, the number of addresses at this level fell to 13,735 on February 1, its lowest point since November 2022.
What Does This Say About Bitcoin?
A significant number of large holders’ accumulation points to continued faith in cryptocurrencies despite the current consolidation, but whale accumulation is just one of many market factors influencing the price of cryptocurrencies.
Bitcoin’s price trajectory may seem confusing right now, but the macroeconomic outlook points to a positive move on the fundamental side of things. One of them is the recent capital flows of $1.7 billion into Bitcoin spot ETFs in the last 14 days.
According to crypto analyst Michaël van de Poppe, the current Bitcoin consolidation could continue in the coming months before the next halving. The analyst noted resistance between $48,000 and $50,000, and another correction towards $36,000 and $38,000. As he posted on X:
“My general theory is that Bitcoin is consolidating in the coming months.
Pre-Halving a final run towards resistance at $48-50K, after that another correction to $36-38K and from there Altcoins to continue outperforming Bitcoin.”
From a different perspective, Justin Bennett, another popular crypto analyst on social media, predicted a bearish Bitcoin in the near future. According to him, Tether’s dominance chart suggests a further decline in BTC to around $30,000. This price range matches analyst PlanB’s absolute minimum Bitcoin price of $31,000.
According to CryptoPredictions, Bitcoin started in February 2024 at $42,583,264 and is predicted to end the month at $33,056,261. During February, the maximum forecasted BTC price is $46,561.556 and the minimum price is $31,661.858.
The BTC Price is forecast for today (05.02.2024) to be in the $36,729.179 – $54,013.498 price range. Bitcoin is predicted to end today at $43,210,799.
By Audy Castaneda
