From the perspective of many investors, Bitcoin, the largest crypto asset, is currently at a standstill given the current market factors. The cryptocurrency traded between $41,000 and $45,500 for much of last week after recovering from a brief dip below $40,000 on January 23.
Although price action has been disappointing, on-chain data suggests that large holders have been adding to their wallets, pushing the total number of wallets to its highest level in 15 months. At the same time, the holding pattern suggests that smaller whales have expanded their holdings to move up to the next tier of holders.
Large owners are accumulating
It appears that Bitcoin holders have taken steps to boost the cryptocurrency, as evidenced by the increasing number of Whale wallets. According to on-chain analytics platform Santiment, the number of Bitcoin addresses holding between 1,000 and 10,000 BTC increased by 47 more wallets in six days, representing a growth of 2.5%. As a result, the number of addresses in this tier reached 1,958 on February 1, the highest level since November 2022.
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š³ #Bitcoin Fluctuates Between $41,000-$44,000, But Whale Wallets Are on the Rise This Week:
š“ Number of $1,000-$10,000 BTC wallets: 1,958 as of February 1 (most since November 2022)
š” Number of 100-1K $BTC wallets: 13,735 as of February 1st (at least as of November 2022)https://t.co/MTOnjURnfV pic.twitter.com/QrxW8CH5c2
ā Santiment (@santimentfeed) February 3, 2024
Additionally, Santiment data showed the decline in wallet addresses in the layer below. That is, those who own between 100 and 1,000 BTC. The number of wallets in this area fell by 154 addresses over the same period, a decrease of 1.1%. As a result, the number of addresses in this tier fell to 13,735 on February 1, the lowest level since November 2022.
Bitcoin is currently trading at $43,055 on the daily chart: TradingView.com
What does this say about Bitcoin?
The accumulation of whales by a large number of large holders suggests that confidence in the cryptocurrency continues despite the current consolidation, but the accumulation of whales is just one of many market factors influencing the price of the cryptocurrency. Bitcoins Price development may seem unclear at the moment, but the macroeconomic outlook points to a positive move on the fundamental side of things. One of them is this recent capital flows of $1.7 billion in Bitcoin spot ETFs in the last 14 days.
According to crypto analyst Michaƫl van de Poppe, Bitcoin's current consolidation could continue in the coming months ahead of the next halving. The analyst noted resistance at $48,000-$50,000 and a further correction towards $36,000-$38,000.
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My general theory is that #Bitcoin will consolidate in the coming months.
Before the halving, a final push towards resistance at $48,000-50,000, then another correction to $36,000-38,000 and from then on #Altcoins will continue to outperform Bitcoin. pic.twitter.com/sYiqpg3T93
ā MichaĆ«l van de Poppe (@CryptoMichNL) February 3, 2024
From another perspective, Justin Bennett, another popular crypto analyst on social media, said: predicted a bearish Bitcoin in the near future. In his opinion, Tetherās dominance chart suggests a further BTC decline to around $30,000. This price range is consistent with Analyst PlanB's absolute Bitcoin price floor of $31,000.
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Bitcoinās 200-week moving average is 31,000. When Bitcoin price moves away from 200 WMA, Bitcoin has never fallen below 200 WMA in accumulation (blue) and bull (orange/red) markets. So 31,000 could be the absolute floor and in my opinion Bitcoin could never reach 31,000 again. 200WMA is also risingā¦ pic.twitter.com/3kqSbXWLjU
ā PlanB (@100trillionUSD) February 3, 2024
At the time of writing, Bitcoin is trading at $42,909.
Featured image from Adobe Stock, chart from TradingView
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