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.— ecoinometrics (@ecoinometrics) March 12, 2022
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
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.
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.