$3.8 billion bitcoin whales emerge as price targets $21,000

Despite the macroeconomic headwinds, the Bitcoin-Price held up far better than traditional markets in recent weeks. As Bitcoinist reported, Bitcoin once again showed strength just yesterday.

As the Federal Reserve issued rather hawkish signals during the FOMC press, causing the S&P500 to plunge 2.5%, BTC managed to hold above the psychologically important $20,000 level.

Bitcoin whales stacking sats

As on-chain data shows, whales could be to blame for the past few weeks’ performance. As an anonymous analyst wrote via Twitter, since September 20, about 9 new addresses with 10,000 to 100,000 BTC have been created on the network, accumulating about 190,000 BTC worth about $3.8 billion.

#Bitcoins | Since September 20, about 9 new addresses with 10,000 to 100,000 #BTC have been created on the network, accumulating about 190,000 $BTC worth $3.8 billion. pic.twitter.com/rkCJEdqtqz

— Ali (@ali_charts) November 2, 2022

According to Glassnode data, there are now 104 addresses holding more than 10,000 BTC. The addition of nine new addresses is noteworthy in this context.

Only guesses can be made about the organizations or persons behind the addresses. Thus, it is not clear whether these are new investors investing in BTC for the first time or old friends continuing their accumulation at new addresses.

Since these are only addresses, there could possibly also be several addresses belonging to an entity. However, one pattern over the past few weeks stands out. While demand from the Asian market has dropped significantly, American investors are stepping in and accumulating Bitcoin.

The Coinbase Premium gap (14DMA) shows that since July 28, 2022, the main interest has come from US traders, although the BTC price has been unstable and has repeatedly fallen.

Coinbase Premium Vulnerability. Source: CryptoQuant

Another analysis by Whalemap shows that whales have been buying bitcoin in the $19,000 to $19,400 range. The analytics firm estimates September’s whale accumulation at around 120,000 BTC. Therefore, this zone should also serve as the next support.

Whales accumulate bitcoin at 19k. Source: Whalemap

Has BTC Price Bottomed?

As NewsBTC reported, one of the leading on-chain data analytics firms, Glassnode, recently released a report stating that a number of metrics provide a relatively consistent argument that the Bitcoin market has bottomed. According to the study, the current numbers are “almost textbook” comparable to previous cycle lows.

Another trustworthy on-chain indicator, NUPL (Net Unrealized Profit/Loss), is also suggesting a bottom formation. NUPL looks at the difference between unrealized gain and unrealized loss to determine if the network as a whole is currently in a win or loss situation. The anonymous analyst says:

Is the #Bitcoin bottom in? In the last two bear cycles, the NUPL alert market sentiment went from fear to capitulation. These 2 events marked the $BTC market bottom of 2018 and 2020.

Market sentiment is currently in the capitulation phase since falling from $30,000 to $17,000.

According to TA, a convincing move for Bitcoin requires a close above the 7-week high at just above $21,000.

At press time, bitcoin price has yet to break the 100-day moving average at $20.775. The long-term trend indicator, the 200-day moving average, is quite far away and it is just above $24,200.

Bitcoin location below the 100-day ma. Source: TradingView