Rich crypto investors are turning their attention back to Bitcoin ( $45,798.00 ) (BTC) as its price continues to eye a breakout move above $50,000.
Crypto-focused newsletter Ecoinometrics reported positive changes in Bitcoin ( $45,798.00 ) holdings for addresses controlling 1,000-10,000 BTC. So, based on their rising account balances throughout August, Ecoinometrics spotted a renewed accumulation sentiment among “whales,” hinting that wealthy investors consider the current Bitcoin ( $45,798.00 ) price levels as attractive to place bullish bets.
Bitcoin accumulation trend versus price levels. Source: Ecoinometrics
The sentiment appeared the same among small fishes—Bitcoin investors that hold less than 1 BTC. Ecoinometrics reported that they have been accumulating Bitcoin ( $45,798.00 ) since June and, during a period, have also absorbed the selling pressure coming from the whales’ side. Their buying sentiment coincided with a price rally to $50,000, a key psychological resistance level.
“Recently, there has been some on-chain divergence between small fish who are accumulating coins [and] whales who are offloading coins,” tweeted Ecoinometrics on Sunday.
“That’s not ideal [for supporting] Bitcoin’s price, but it looks like things are changing! Whales are ticking back up.”
Blockchain analytics platform Glassnode also reported a spike in buying sentiment among small fishes. In detail, the number of addresses holding at least 0.1 BTC reached a 3-month high of 3,231,069 on Monday, further validating the accumulation data above.
Bitcoin number of addresses holding over 0.1 BTC. Source: Glassnode
Meanwhile, Glassnode’s unspent transaction output (UTXO) data alert presented the $45,000-$50,000 range, wherein whales capitulated the most recently, as a strong support area.
“Over 1.65M BTC now have an on-chain cost basis within the $45k to $50k range,” the platform tweeted Monday, adding:
“The $31k to $40k zone is also home to another 2.98M BTC, indicative of large accumulation demand.”Bitcoin UTXO realized price distribution. Source: Glassnode
Bitcoin holds above the ‘green wave’
The whale and fish alert surfaces as the Bitcoin ( $45,798.00 ) market await a clear breakout move above $50,000.
Related: Bitcoin ( $45,798.00 ) accumulation accelerates among ‘whales’ and ‘fish,’ while BTC rallies to $40K
As it stands, the BTC/USD exchange rate has been consolidating under the said resistance level since Aug. 27. In doing so, the pair have also found interim support above $47,000, which, more or less, has been coinciding with a 20-day exponential moving average floor (20-day EMA; the green wave in the chart below).
BTC/USD daily price chart featuring the 20-day EMA support. Source: TradingView.com
Historically, a break below the 20-day EMA prompts traders to move their downside target to the 50-day EMA (currently near $43,500). Popular market analyst Rekt Capital also presented an outlook that highlighted the levels around $43,500 as Bitcoin’s next support range.
The lack of weakness in this red area for #BTC has translated into downside$BTC is in no man’s land following its rejection from the red area
Next major support area is the orange region below$BTC #Crypto #Bitcoin https://t.co/wRWfkxc4iw pic.twitter.com/Qe4xvxNqUI
— Rekt Capital (@rektcapital) August 30, 2021
Small fishes have accumulated Bitcoin ( $45,798.00 ) relentlessly in the $40,000-$50,000 range, with no signs of trend reversals in the previous 30 days. On the other hand, whales underwent a capitulation period when Bitcoin ( $45,798.00 ) entered the $45,000-$50,000 range.
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