Both Bitcoin Elephants and Baby Fish are piling up simultaneously after BTC price rallied 30%
Bitcoin addresses with at least 1,000 BTC, known as whales, have started accumulating more during the recent market rally. According to Coin Metrics, the total supply at these addresses has increased from 7.95 million on Jan. 24 to 8.096 million BTC today.
Bitcoin whales and institutional capital flow
Whales’ buying sentiment was sparked during Bitcoin’s rally over the past two weeks, as BTC price recovered from its 2022 bottom of $33,000 on Jan. 24 to around $43,500 as of this writing.
BTC delivery to addresses with balances greater than 1,000 BTC | Source: Coin Metrics, Messari
Retail investors holding less than 1 BTC, known as “fish,” also participated in the accumulation during Bitcoin’s recent price rally.
Meanwhile, the data resource showing Coin Metrics data in cluster form from Ecoinometrics shows the simultaneous accumulation behavior between bitcoin whales and fry.
Interestingly, these clusters had moves similar to those leading to Bitcoin’s all-time high (ATH) of $69,000 in November 2021.
On-chain data from btc wallet clusters and whale wallets | Source: Econometrics
“Again, this cycle, this price rally correlates quite well with buying pressure from both youth and whale addresses simultaneously over a longer period of time,” said Nick, market analyst at Ecoinometrics, in one note.
“I don’t know if this signal will continue to be used to predict a sustained rally, but for now it’s working well.”
One report published by CoinShares this week also showed an increase in cryptocurrency inflows over the past week. Notably, inflows into these funds have quadrupled to $85 billion, with $71 million flowing into Bitcoin-focused investment products, indicating interest from new institutions as well.
Net inflows into digital assets as of February 4, 2022 | Source: CoinShares, Bloomberg
“It’s hot right now Go up”
Nick suggests that Bitcoin has enough room for a rally in the coming months, citing what is known as the “synthetic risk score” which is derived from four parameters: risk of market overexpansion, risk of low demand/high supply, risk takeover by owners and the risk of increased selling pressure.
Results are displayed in color, with red and blue indicating a hot and cool market, respectively. The hotter the market, the higher the selling pressure.
“It’s heating up now and in theory there’s no impediment to an up move other than a lack of momentum,” the Ecoinometrics analyst said.
BTC’s aggregate risk level | Source: Econometrics
Watch bitcoin prices
Meanwhile, WhaleMap’s on-chain data monitoring plan predicts $46,200-$49,000 as Bitcoin’s “current resistance range,” citing higher trading activity in the past price range.
Similarly, the firm notes that the range between $41,400 and $42,400 is currently acting as support as illustrated in the chart below.
“The next on-chain resistance in terms of whale accumulation is $47,000.”
BTC transaction volume records | Source: WhaleMap
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Author
Analysis
Both Bitcoin Elephants and Baby Fish are piling up simultaneously after BTC price rallied 30%
Bitcoin addresses with at least 1,000 BTC, known as whales, have started accumulating more during the recent market rally. According to Coin Metrics, the total supply at these addresses has increased from 7.95 million on Jan. 24 to 8.096 million BTC today.
Bitcoin whales and institutional capital flow
Whales’ buying sentiment was sparked during Bitcoin’s rally over the past two weeks, as BTC price recovered from its 2022 bottom of $33,000 on Jan. 24 to around $43,500 as of this writing.
BTC delivery to addresses with balances greater than 1,000 BTC | Source: Coin Metrics, Messari
Retail investors holding less than 1 BTC, known as “fish,” also participated in the accumulation during Bitcoin’s recent price rally.
Meanwhile, the data resource showing Coin Metrics data in cluster form from Ecoinometrics shows the simultaneous accumulation behavior between bitcoin whales and fry.
Interestingly, these clusters had moves similar to those leading to Bitcoin’s all-time high (ATH) of $69,000 in November 2021.
On-chain data from btc wallet clusters and whale wallets | Source: Econometrics
“Again, this cycle, this price rally correlates quite well with buying pressure from both youth and whale addresses simultaneously over a longer period of time,” said Nick, market analyst at Ecoinometrics, in one note.
“I don’t know if this signal will continue to be used to predict a sustained rally, but for now it’s working well.”
One report published by CoinShares this week also showed an increase in cryptocurrency inflows over the past week. Notably, inflows into these funds have quadrupled to $85 billion, with $71 million flowing into Bitcoin-focused investment products, indicating interest from new institutions as well.
Net inflows into digital assets as of February 4, 2022 | Source: CoinShares, Bloomberg
“It’s hot right now Go up”
Nick suggests that Bitcoin has enough room for a rally in the coming months, citing what is known as the “synthetic risk score” which is derived from four parameters: risk of market overexpansion, risk of low demand/high supply, risk takeover by owners and the risk of increased selling pressure.
Results are displayed in color, with red and blue indicating a hot and cool market, respectively. The hotter the market, the higher the selling pressure.
“It’s heating up now and in theory there’s no impediment to an up move other than a lack of momentum,” the Ecoinometrics analyst said.
BTC’s aggregate risk level | Source: Econometrics
Watch bitcoin prices
Meanwhile, WhaleMap’s on-chain data monitoring plan predicts $46,200-$49,000 as Bitcoin’s “current resistance range,” citing higher trading activity in the past price range.
Similarly, the firm notes that the range between $41,400 and $42,400 is currently acting as support as illustrated in the chart below.
“The next on-chain resistance in terms of whale accumulation is $47,000.”
BTC transaction volume records | Source: WhaleMap
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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