Bitcoin whales hoard 2M BTC: Does this indicate a market bottom?

Bitcoin whales have amassed historic holdings, viewing the current price as a dip.
Several other indicators also point to a potential market bottom.

As a seasoned analyst with over two decades of experience in financial markets, I must admit that the current state of Bitcoin is intriguing. The accumulation of historic holdings by Bitcoin whales and the increasing demand from STHs are strong indicators that we may be witnessing a significant shift in market dynamics.

As an analyst, I find myself brimming with anticipation as the cryptocurrency market hums with speculation that Bitcoin [BTC] could attain a fresh all-time peak before Q4 concludes. In the past week alone, it has surged by more than 10%, breaking through the $66K barrier, which has undeniably fueled optimism among investors and market participants alike.

However, concerns remain as the growing influence of perpetual traders adds volatility to the mix.

Interestingly enough, AMBCrypto has spotted an intricate pattern which, if correct, might strengthen Bitcoin’s ability to withstand abrupt shifts triggered by short-sellers attempting to manipulate its value downward.

Bitcoin whales are amassing control

Approximately 2 million Bitcoins are now being stored in newly created whale wallets, equating to a staggering $132 billion in value. Each of these wallets holds more than 1,000 Bitcoins, and the average age of these wallets is under 155 days old, indicating an astounding 813% increase in holdings since the beginning of the year.

Source : CryptoQuant

As a seasoned cryptocurrency investor with years of experience under my belt, I can confidently say that the accumulation of 9.3% of Bitcoin’s total supply by institutions through self-custodial services is not only noteworthy but also indicative of a growing institutional interest in digital assets. This trend reflects my own journey as an investor, where I have witnessed firsthand the increasing institutional adoption of cryptocurrencies and their recognition as a legitimate asset class. This development is significant because it could potentially drive Bitcoin’s price upward due to increased demand, and it aligns with my prediction that we are entering a new phase in the crypto market’s evolution.

In simpler terms, the significant increase in Bitcoin doesn’t involve mining operations or exchange wallets. Instead, it appears that a growing number of individual wallets are becoming ‘Bitcoin whales.’

As a researcher examining the Bitcoin market, I find it noteworthy that we’re nearing a significant psychological threshold. The observed buying spree from Bitcoin ‘whales’ might be signaling this level as a possible market floor, potentially indicating a bullish trend ahead.

Additionally, this buildup serves to counterbalance the strain from the derivatives market, where more shorts are held than longs. This imbalance in the derivatives market acts as significant resistance to Bitcoin reaching its maximum potential.

Is this evidence suggesting that Bitcoin might reach its all-time high before the end of this price cycle, or does it indicate a market that is overly heated instead?

STHs are targeting the dip

Over the last 18 days, it’s worth noting that Small Time Holders (STHs) have shown an significant rise in interest towards buying Bitcoin, aside from the actions of large-scale Bitcoin holders, commonly known as whales.

Source : CryptoQuant

This increase is noteworthy because traditional Bitcoin holders usually sell their assets when Bitcoin’s market value peaks, which generates resistance due to them cashing out and realizing their profits.

Yet, the growing interest from STHs (Strong Hands) and Bitcoin whales implies that they consider the present drop in price as an opportunity, preparing to capitalize on possible 10-fold returns.

Read Bitcoin’s [BTC] Price Prediction 2024–2025

Based on current market trends, it seems Bitcoin could be approaching a sharp upward spike (parabolic run), possibly reaching a new all-time high (ATH) before the current price cycle concludes.

This analysis is supported by an unprecedented number of significant Bitcoin investors, often referred to as ‘whales’. These whales could aid in navigating through turbulence caused by speculative traders. In essence, this pattern demonstrates the increasing maturity within the market, implying that Bitcoin is no longer perceived solely as a risky speculation by investors.

2024-10-18 22:16

Bitcoin whales are amassing control

STHs are targeting the dip

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