Bitcoin whales supply hits 3-year low, BTC price looking to retest $18,600?

• Bitcoin whales currently hold the lowest supply since June 2019, while small to mid-sized holders’ supply hit an all-time high.
• Contrary to their holding, BTC whales’ addresses are currently at their highest since February 2021.
• Establishing consistent lower highs, BTC has been stuck within a downtrend wedge since the June 2022 crash.

Bitcoin has been consolidated for four months, but when the king coin’s price is observed on a larger timeframe, the situation becomes far more concerning. Consequently, a major cohort among its investors is exhibiting a pattern that could hint towards far more bearishness than anticipated.

Bitcoin whales take it a notch down

Usually, bear markets are an opportunity to accumulate for the Bitcoin whale addresses. However, given the intensity of the bearishness at the moment, these whales have decided to take the other way. According to Santiment data, over the last few months, the gradual decrease in holdings has led to BTC whales’ supply hitting its lowest since June 2019.

The three-year low indicates that whales have possibly been minimizing losses by selling their BTC supply. Another possible reason behind the decreased supply could be the increase in whale addresses.

Bitcoin whale supply

Lack of accumulation combined with increased holders can also result in decreased domination over BTC’s circulating supply. As evinced by Santiment, the addresses holding 10 to 100 BTC and 10K to 100 K BTC are at their highest since February 2021.

Bitcoin whale addresses

Surprisingly, this period has been in favor of small to mid-sized holders as their supply has reached an all-time high. Bullish anticipation could be one of the reasons for their buying spree, which is how these cohorts currently hold 15.9% of all BTC supply. (ref. Bitcoin whale supply) 

But none of this would be helpful for Bitcoin investors if the price continues to head downwards, which is a possibility currently.

Is Bitcoin looking to test the lower lows?

Bitcoin’s price has been moving sideways for a good while. But considering the intraday fluctuations over a period of 10 months, it is apparent that Bitcoin is attempting to rise. 

Stuck under a downtrend line, attempts at breaching it has proven unsuccessful since August. The consistent formation of lower highs does show conviction in an upswing, but due to the weak global financial markets, these attempts have failed.

At the moment, BTC is closer to testing the $18,600 critical support line. This level forming a downtrend wedge with the downtrend line could provide Bitcoin support for a bounce-off. However, falling below it could make recovery much more difficult for BTC.

BTC/USD 4-hour chart

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