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Bitcoin Whales Enter Active Accumulation State, On-Chain Data Suggests

Mon, 01/10/2022 - 14:11
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Arman Shirinyan
While crypto market sentiment is flipping from bullish to bearish, whales are not rushing to sell their holdings and are instead buying even more
Bitcoin Whales Enter Active Accumulation State, On-Chain Data Suggests
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Investors usually dread a correction on any financial market as most of them lose their funds and sometimes even face liquidation. But while others count their losses, large players or whales start to accumulate, increasing their positions with discounts.

Bitcoin enters accumulation phase

IntoTheBlock analysts have highlighted increased volumes on addresses that are already holding over 1,000 BTC. Elevated volumes on large Bitcoin addresses are usually tied to two things: high spending rates and accumulation.

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Since addresses are not losing their worth due to moving funds on exchange addresses, and the number of coins in their wallets are increasing, it could indicate that whales are in fact accumulating rather than capitulating.

During the previous correction, the activity of wallets that hold more than 1,000 Bitcoins on their addresses has increased in a similar way. Whales tend to step up during bear trends on markets. By buying assets at a discount, it allows them to redistribute their holdings with greater profits when the ascending movement takes place.

Bitcoin's market performance

While the buying activity on whale-tier addresses intensifies, Bitcoin is not rushing to recover almost 20% of its value lost previously, and it goes down even further, reaching $40,000.

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Previously, due to instability in the mining industry due to political demonstrations in Kazakhstan and the first signs of the strengthening of U.S. monetary policy by the Fed, Bitcoin has plunged by more than 18% in less than two weeks. The majority of assets on the cryptocurrency market have become oversold, according to technical indicators like the Relative Strength Index.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.