Bitcoin [BTC]: Slowing selling pressure, yes, but what about buying pressure?

• BTC whales have intensified accumulation over the past few weeks.
• While selling pressure has eased, buying momentum was not enough to push prices higher.

After the clearly bullish cycle between 2020 and 2021 that caused Bitcoin [BTC] To post an all-time high of $60,000, the severe bear market that has plagued the year so far prompted BTC whales to reduce their supply, further lowering the leading coin’s value.

Read Bitcoins [BTC] Price prediction 2023-2024

However, a shift in sentiment has been noted among BTC whales as this cohort of holders intensified accumulation in recent months, data from Santiment showed.

According to the on-chain analytics platform, BTC addresses holding between 100 and 10,000 BTC have collected 40,747 BTC worth over $726 million over the past 10 days.

Additionally, the number of new addresses holding between 100 and 10,000 BTC has increased rapidly over the past three weeks (159 new addresses). This represents the fastest growth in this category of addresses in 10 months, coinciding with heightened uncertainty and fear (FUD) following the announcement of the Russia-Ukraine war.

Source: Santiment

Relief coming?

CryptoQuant analyst MAC_D evaluated BTC’s issued output value bands and noted that coin distribution momentum was declining.

MAC_D noted that the series of events over the past month, such as the FTX collapse and miner capitulation, all of which should have led to a sustained decline in the BTC price, only temporarily impacted the king coin’s price, after which it rallied . MAC_D noted,

“There have been several crises in the Crypto market this year, but the amount of whale deposits in the exchange is decreasing. The FTX crisis was much more severe than the LUNA crisis, but the drop was a short time and a small drop. The mining crisis that could be next could bring BTC prices down, but is not expected to lead to major panic selling.”

While agreeing that FUD is still on the market, MAC_D stated:

“As the number of long-term holders has increased, it will likely be a boring and long decline rather than a strong panic sell.”

While selling pressure may have eased and whale accumulation has strengthened, BTC’s purchase volume recently hit its lowest level since November 2020. Growth in BTC’s purchase volume usually precedes an eventual uptrend in its price.

However, according to CryptoQuant analyst, “Ghoddusifar BTC purchase volume is still in decline. and has reached its lowest level since November 2020.”

Ghoddusifar predicted another drop in BTC price, concluding that “we still cannot see any signs of a trend reversal.”

Source: CryptoQuant

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