Did Top Three Bitcoin Addresses Just Call Another Local Bottom?

The buying pattern of bitcoin whales has long been an indicator for coming market movement. While it may not happen everything, the fact remains that these top addresses control enough of the supply between them to have significant impacts on the price. This is evident in past movements coinciding with major price shifts and once again, these whales have gone on another accumulation trend that could be the start of another bull rally.
Bitcoin Addresses With 100K Accumulated
The bitcoin addresses that hold more than 100K on their balances are followed by investors and their activities are closely monitored. Usually, depending on if these wallets are buying or selling, the amounts can be large enough to move the needle more than a few inches. This time around, the wallets have been accumulating and their collective balances have reached a critical point.
Related Reading | Bitcoin Dominance Drops To 42% As Price Declines Below $43,000
On-chain analysis firm Santiment recently reported that three bitcoin wallets holding more than 100K BTC have been increasing their holdings for the past year. These wallets which had a collective balance of 260K coins by February last year have more than doubled their holdings. In the space of a year, they have added a collective total of 404K BTC, bringing their balance to 664K.

🐳 #Bitcoin’s top addresses with 100k+ coins currently hold 664k $BTC after sitting at just 260k $BTC in Feb, 2021. There are currently 3 addresses of at least this size. They held an #AllTimeHigh of 693k $BTC in late June, just prior to prices surging. https://t.co/VRMD1itWCL pic.twitter.com/V9bqIOrB6j
— Santiment (@santimentfeed) February 16, 2022

This is not a new record but is close to the previous all-time high balances of these three wallets. In June last year, the three wallets hit an all-time high of 693K on their balances, still unbroken to date.
Why Is This Important?
Well, one thing about these three wallets is the kind of pull they have in the market. The last time the wallets accumulated this much bitcoin was at the bottom of the downtrend in mid-2021. At the tie that these whale wallets hit their all-time high bitcoin holdings, the digital asset marked a local bottom. This was promptly followed by a tremendous bull rally that sent bitcoin and other cryptocurrencies towards new all-time highs.

BTC loses footing at $40K | Source: BTCUSD on TradingView.com
Now, the wallets have accumulated close to the same position once again. With less than 30K BTC left to reach its previous high, bitcoin looks to be marking another local bottom. If this is the case, then bitcoin could be gearing up for another rally towards a new all-time high.
Related Reading | Monero (XMR) Price Slides As Canada Includes Crypto In Emergencies Act
While this may be quite bullish for the digital asset, other indicators point towards more bearish tendencies. Bitcoin is only trading above its 20-day SMA and even that is barely holding. It shows that fewer investors are willing to purchase the asset for prices they have in recent weeks causing a decline in value. If this continues, then bitcoin could very well be struggling to hold its next support level at $39,190 in no time.
Featured image from MARCA, chart from TradingView.com

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 17,258.37
ethereum
Ethereum (ETH) $ 1,290.00
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 291.27
usd-coin
USD Coin (USDC) $ 1.00
binance-usd
Binance USD (BUSD) $ 1.00
xrp
XRP (XRP) $ 0.391402
dogecoin
Dogecoin (DOGE) $ 0.098477
cardano
Cardano (ADA) $ 0.314934
matic-network
Polygon (MATIC) $ 0.928450
polkadot
Polkadot (DOT) $ 5.40
staked-ether
Lido Staked Ether (STETH) $ 1,276.52
litecoin
Litecoin (LTC) $ 78.06
shiba-inu
Shiba Inu (SHIB) $ 0.000009
okb
OKB (OKB) $ 21.42
dai
Dai (DAI) $ 1.00
solana
Solana (SOL) $ 13.90
tron
TRON (TRX) $ 0.055072
uniswap
Uniswap (UNI) $ 6.18
avalanche-2
Avalanche (AVAX) $ 13.56
leo-token
LEO Token (LEO) $ 3.77
chainlink
Chainlink (LINK) $ 7.03
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 17,240.61
cosmos
Cosmos Hub (ATOM) $ 9.83
ethereum-classic
Ethereum Classic (ETC) $ 19.44
the-open-network
Toncoin (TON) $ 1.82
monero
Monero (XMR) $ 146.82
stellar
Stellar (XLM) $ 0.085562
bitcoin-cash
Bitcoin Cash (BCH) $ 111.83
quant-network
Quant (QNT) $ 124.27
crypto-com-chain
Cronos (CRO) $ 0.064535
algorand
Algorand (ALGO) $ 0.226638
filecoin
Filecoin (FIL) $ 4.45
near
NEAR Protocol (NEAR) $ 1.73
apecoin
ApeCoin (APE) $ 3.99
vechain
VeChain (VET) $ 0.019243
internet-computer
Internet Computer (ICP) $ 4.45
hedera-hashgraph
Hedera (HBAR) $ 0.048507
eos
EOS (EOS) $ 1.05
elrond-erd-2
MultiversX (Elrond) (EGLD) $ 46.29
trust-wallet-token
Trust Wallet (TWT) $ 2.65
flow
Flow (FLOW) $ 1.04
terra-luna
Terra Luna Classic (LUNC) $ 0.000172
frax
Frax (FRAX) $ 0.999918
the-sandbox
The Sandbox (SAND) $ 0.593216
axie-infinity
Axie Infinity (AXS) $ 8.13
tezos
Tezos (XTZ) $ 1.00
aave
Aave (AAVE) $ 62.90
theta-token
Theta Network (THETA) $ 0.878779
huobi-token
Huobi (HT) $ 6.60