These whales dropped their holdings but never purchased them back, but here’s why it might be bullish
Bitcoin reaching an all-time high back in November was a moment of euphoria when the entire market got ready for the first cryptocurrency reaching $100,000 in a matter of a week, but the largest crypto holders did not think so.
Whales dropping their holdings
According to data from Glassnode, the number of wallets holding 1,000 or more BTC on their addresses has rapidly dropped after the first cryptocurrency almost reached $70,000. Such a large drop in the number of addresses confirms that whales dropped the majority of their holdings on retail traders back at ATH.
Previously, whales took massive profits in the summer when Bitcoin’s price plunged below $30,000. But at the same time, due to a sudden inflow of funds from both private and institutional investors, the market was able to swiftly retrace and reach new highs.
Whales buying back
Approximately 500 addresses that were previously holding more than 1,000 BTC sold did not buy back any of their coins during the current downtrend on the market. This fact confirms that there is still plenty of Bitcoin supply in the hands of exchanges rather than whales or large investors.
Once the accumulation trend appears on the market and the number of large addresses starts growing, the first cryptocurrency will most likely enter an uptrend and reach new highs, rather than when whales remained stagnant and preferred holding back their buying power.
At press time, Bitcoin is trading at $43,744 after facing a sudden spike following the market’s exit from an oversold condition. Altcoins are also facing a price increase after the fresh money flowed into the market.