Bitcoin (BTC) accumulation by large holders has reached levels not seen since before the 2020 bull market. Could it propel Bitcoin’s price to a breakout above the $70,000 mark?
Bitcoin whale accumulation reached 2020 levels
Bitcoin accumulation by whales, or entities holding at least 1,000 BTC, has hit a nearly four-year high last seen during 2020, according to a Bitfinex research report shared with Cointelegraph.
Referencing the chart below, the Bitfinex analysts wrote:
“Adding another layer to this bullish sentiment, Bitcoin ‘whales’ are also accumulating Bitcoin at a pace reminiscent of the pre-2020 bull run. This accumulation, now at its highest in the last two months, has led to a new historical high in their Bitcoin balance.”
Factors like an anticipated interest rate cut and increased institutional buying could lead to more upward momentum for Bitcoin, according to Bitfinex analysts:
“Looking forward, several factors could potentially reignite Bitcoin’s upward trajectory. These include an increase in average daily ETF buying activity, a reduction in selling pressure from long-term holders, and a rise in liquidity, which could be triggered by the anticipated rate cut.”
On June 10, spot Bitcoin exchange-traded funds (ETFs) in the United States recorded their first day of net outflows in over 19 consecutive trading days. The 10 U.S. ETFs saw $64.9 million worth of outflows, according to Farside Investors.
On June 11, the U.S. Bitcoin ETFs saw over $200 million worth of negative net outflows.
Related: 63 US banks on the brink of insolvency: Why Bitcoin’s next target is $100K
Bitcoin short-term holder realized price at $63,700
Bitcoin has successfully confirmed the $66,000 mark as its new support on the weekly chart, according to popular crypto analyst Rekt Capital.
The analyst wrote in a June 12 X post, to his 476,000 followers:
“Bitcoin has successfully retested the black Mid-Range as support (~$66,000) on the recent pullback. Any downside volatility below black is bonus territory.”
Meanwhile, Bitcoin’s short-term holder realized price rose to $63,729 on June 11, according to LookIntoBitcoin. During bull cycles, the short-term holder realized price often acts as a dynamic support line for Bitcoin’s price.
But Bitcoin’s price has been stuck despite the increasing realized price, mainly due to the distribution of older coins, according to Thomas Fahrer, co-founder of Apollo. He wrote in a June 12 X post:
“We simply have to wait it out until we complete the market ‘reset’ which sets a new floor. Then $65,000–$70,000 becomes a base much in the same way $10,000 became a base in 2020.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.