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Major Bitcoin holders, commonly referred to as whales, have resumed increasing their cryptocurrency reserves. This coincided with the stabilization of the price of the leading cryptocurrency near $71,000, as noted by analysts from the Santiment platform.
The shift in sentiment among wallet owners holding between 10 BTC and 10,000 BTC has been interpreted by experts as a bullish signal, indicating a potential price increase for the cryptocurrency in the near future. Analysts described the current situation as a “positive turnaround.” According to Santiment, wallets with balances ranging from 10 to 10,000 bitcoins currently account for 68.17% of the total supply of the asset, compared to 68.07% a week ago.
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Just a week prior, the activity of large holders was different. On March 6, Santiment reported that over the previous two days, whales had sold 66% of the bitcoins acquired between February 23 and March 3. This occurred when the price of Bitcoin surpassed $70,000 and briefly reached $74,000.
A local bottom for Bitcoin’s price may be forming soon, but only if whales continue to accumulate, while the share of retail investors in the overall supply begins to decline, blockchain analysts clarified.
“An ideal scenario for Bitcoin would be when smaller wallets, representing retail investors, reduce their holdings, while the group of large holders expands. This would signal a transition of coins from weak hands to strong hands,” representatives from Santiment explained.
Conversely, an increase in purchases by retail investors may indicate excessive optimism. Historically, Bitcoin has reached its bottom when smaller investors lost hope and began liquidating their assets, experts concluded.
On Sunday, March 15, the Crypto Fear & Greed Index for Bitcoin investors remained in the “extreme fear” zone, around 16 points. However, this is an increase from the previous week (when the index was at 12). Currently, Bitcoin is trading at approximately $71,600. Over the past week, the price has risen by more than 8%, according to TradingView.
Previously, an analyst from the on-chain platform CryptoQuant predicted a “period of great boredom” for Bitcoin. The expert claimed that the leading cryptocurrency could remain stuck in the $60,000–80,000 range for an extended period due to a weak influx of new capital into the market.
