- A mysterious whale with $4.9 billion worth of BTC recently added another $18 million in Bitcoins to their holdings.
- Analysts predict that October will be filled with sellers' woes, in a period of BTC accumulation by large wallet investors.
- The whale is accumulating since price dropped below $52,000, analysts label it "conviction buy."
Large-wallet investors continued accumulating Bitcoin after a drop below $50,000. Analysts anticipate a bullish supply squeeze in BTC.
Whale continues buying Bitcoin, scoops up $170 million in BTC within two weeks
The third-largest Bitcoin whale has added another 408 Bitcoins to a total holding of 112,000 in their wallet. The wallet now holds $4.9 billion worth of Bitcoin. Analysts have labeled this purchase as "buying the dip."
Large wallet investors' appetite for Bitcoins has increased following the asset's recent price drop. Mysterious whales are active again, accumulating when the BTC price drops below $50,000.
Analysts have noted that Bitcoin's long-term investors have continued buying despite the asset plunging 23% from its local high. Short-term BTC holders, considered speculators, are selling, while long-term investors continue buying.
When Bitcoin crossed $60,000, large wallet investors sold substantial chunks of their BTC holdings. Pseudonymous cryptocurrency analyst on CryptoQuant, @venturefounder, observed that the whale wallet made seven purchases for a total of $17.7 million since the latest Bitcoin price drop.
More conviction buys!
— venturefoundΞr (@venturefounder) September 23, 2021
The 3rd largest #Bitcoin whale wallet added another 408 #BTC today at $43.4k for a total of $17.7M USD. This is the 7th buy since BTC took a downturn from the $52k top earlier this month.
This whale address has been in net accumulation trend since 2019. pic.twitter.com/Xo4nyXObdf
The movement of Bitcoins between different categories of holders is an ideal indicator to predict a price rally. In the latest issue of "The Bitcoin Forecast," a biweekly Bitcoin newsletter, on-chain analyst Willy Woo has introduced the "Bitcoin HODLer Strength" chart.
The chart represents three categories of Bitcoin holders (strong, medium and weak) depending on the duration for which they held Bitcoin in their wallet. Woo tracks the relative strength of each category with respect to the other, as Bitcoins move between them.
When strong holders are at their peak, with medium and weak holders at a low, Woo considers it the perfect setup for a Bitcoin price rally.
The chart below shows that the current setup is shaping the above structure, signaling an upcoming rally.
Bitcoin relative strength of the strong, medium and weak holders by Willy Woo
Based on data from Ecoinometrics, an on-chain and macro analysis provider, wallet addresses holding less than 1 Bitcoin have been resilient to the recent price changes in the asset. BTC accumulation by these addresses is onward and upward, catching up to the level when the price crossed $64,000 in April 2021.
On-chain accumulation vs. price level is considered as a key indicator of a rally in the asset.
Bitcoin on-chain accumulation trend vs. price level
Dr. Jeff Ross, founder and CEO of Vailshire Capital, recently shared his opinion on "red September," stating that a wave of selling from traders is behind us.
#Bitcoin technical update: Nearing the end of another volatile, red September... as expected.
— Dr. Jeff Ross (@VailshireCap) September 23, 2021
Macro: Bullish
To news: Neutral
On-chain: Neutral
Opinion: Wave of short-term selling--from traders who believe the 2021 bull market is over--is nearing an end. Then onwards & upwards! pic.twitter.com/BB3p0T7EJS
FXStreet analysts have predicted that Bitcoin price will climb higher if the asset stays above the monthly open, $46,461.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.