In the past, USD 19,500 was a resistance level for the price of the pioneering cryptocurrency, but it is now crucial support. The holders with the highest accumulation volumes of BTC in the market are the whales and the shrimp.
The value of Bitcoin (BTC) has dropped by 10% over the last week, finding a support level at 19,200. Recent bullish momentum has allowed the price of the cryptocurrency to exceed USD 19,500. This new support is crucial as it was a notable resistance level in December 2017 and January 2021.
Bitcoin has shown a decline of 59% since the beginning of 2022 but has accentuated its fall in June. That month turned out to be the worst in the entire history of the cryptocurrency, with a negative return of 40.6%. The following resistance levels might be at USD 19,800 and USD 20,500 after starting at USD 19,500.
The Bitcoin Relative Strength Index (RSI) is trending to the upside and is above 50. This indicator usually coincides with bullish price zones when it rises above that mark.
BTC is trading at around USD 20,250 and has accumulated a 5.9% gain over the last seven days. While its daily trading volume is above USD 19.13 billion, its market capitalization is about USD 385.43 billion, according to CoinGecko.
Holders Drive the Price of Bitcoin above USD 19,000
Analytics firm Glassnode recently highlighted the behavior of three segments of BTC holders. They said that whales (over 1,000 BTC) and shrimp (less than 1 BTC) accumulate while miners sell. That is happening amid the challenging market conditions that Bitcoin has had to face this year.
The graph of the incoming and outgoing flows of exchanges shows the withdrawals of BTC by the whales. It is also possible to see few deposits (sales) by those long-term holders.
The balance of BTC held by the whales has grown from 6.5 million BTC in July 2019 to 8.69 million BTC today. In three years, the volume of Bitcoin controlled by the whales has increased by 40% until representing 45% of the total circulation. Those holders have also added about 140,000 BTC per month to their wallets.
The so-called shrimp, holders controlling less than 1 BTC, have accumulated volumes much lower than the whales. Over the last few months, the shrimp have moved 36,750 BTC per month from exchanges, about a fourth of what the whales have. The accumulation strategy of the shrimp has allowed them to control 1.12 million BTC.
If the buying strategy of the whales and the shrimp holds, the price of Bitcoin might rise above current levels. It could also break above the support at USD 20,000 reached on June 19th.
Bitcoin suffered a considerable loss in the first half of 2022 and is currently trading at around USD 20,216. However, it is only time to see how the price rebounds to previous levels.
By Alexander Salazar
