Bitcoin’s recent market activity reveals significant shifts in demand and accumulation patterns among large holders, suggesting potential influences on its price trajectory. The top cryptocurrency’s price surged from around $40,000 in January 2024 to above $70,000 by March before retracing. It has recently begun to again threaten $70,000, coinciding with notable increases in apparent demand and whale holdings.
Data indicates that the apparent demand for Bitcoin rose sharply in early 2024, aligning with the price escalation. Positive demand periods, marked by increases in demand relative to previous intervals, were prevalent during this time. A renewed surge in demand appears to have again fueled the recent price hike, demonstrating a strong correlation between demand trends and market valuation.
Whale holdings—accounts holding substantial amounts of Bitcoin—also exhibited significant activity. Total whale holdings increased steadily from approximately 3.2 million BTC at the start of the year to over 3.7 million by October.
The monthly percentage change in these holdings spiked between January and April, reflecting rapid accumulation as prices climbed. However, the middle of the year saw fluctuations, with steep drops in holdings during June, followed by a robust recovery approaching October.
Long-term analysis shows that whale behavior often mirrors major market movements. Periods of increased whale accumulation have historically corresponded with significant upward price trends. For instance, substantial accumulation occurred during the 2020-2021 bull run, with whales adding to their holdings as Bitcoin’s price escalated. Conversely, after price peaks, whales tend to reduce their holdings, suggesting strategic profit-taking or market repositioning.
Accumulator addresses—wallets that hold or consistently increase their Bitcoin holdings—also play a crucial role in the market forces of 2024. Demand from these addresses has begun rising rapidly this month, closing in on the peak from Bitcoin’s all-time high price in late March.
The interplay between these factors highlights the influence of large holders on Bitcoin’s market behavior. Whales and accumulator addresses appear to act in anticipation of price movements,…
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