Bitcoin (BTC) large- and small-sized holders have chosen different strategies as Bitcoin (BTC) struggles to defend crucial $39,000 level
Bitcoin (BTC), the largest cryptocurrency, is down more than 8% from its recent local high above $42,500. However, this is not stopping the optimism of small-sized holders, on-chain data says.
Bitcoin (BTC) wallets with less than 1 BTC are buying; whales remain cautious
According to charts provided by Ecoinometrics, on-chain analytical platform, there are two clear accumulation/distribution patterns in the Bitcoin (BTC) community right now.
#Bitcoin whales and small fish… two different worlds right now.
The small fish 🐟 are accumulating like there is no tomorrow while the whales 🐳 are distributing.
Without the whales I doubt there is enough momentum for a sustained trend upward. 📉🤔👇 pic.twitter.com/bfcikpYJQW
— ecoinometrics (@ecoinometrics) March 12, 2022
The first one is demonstrated by accounts with balances of 1 BTC and lower. They have been accumulating Bitcoins (BTC) since early Q3, 2021: in total, they increased balances by almost 10%.
This process lost steam only once, when Bitcoin (BTC) touched its latest historic high over $69,000 in November 2021.
By contrast, the largest whales on the Bitcoin (BTC) network, who hold 1,000-10,000 BTC each, are not so enthusiastic. For the last 30 days, the largest Bitcoiners are distributing their bags.
Is the bottom in for Bitcoin (BTC)?
Top-tier whales were accumulating in Q4, 2020, and Q2-Q3, 2021. As such, their net balance is almost the same as it was 15 months ago.
Also, one reliable on-chain indicator signals that Bitcoin’s (BTC) price bottom might already be in. The share of the Bitcoin (BTC) supply held by “paper hands” is very low right now.
— Root 🥕 (@therationalroot) March 11, 2022
Typically, this means that another distribution wave is over: short-term holders are done selling. Usually, this is interpreed as a macro-bullish signal for the first cryptocurrency.
Bitcoin (BTC) is now changing hands at $39,090 on major spot trading platforms.