Whales continue Accumulation as Bitcoin Price Falls below US$50,000 Level
On-chain data shows that the whale accounts are continuing their accumulation of BTC even when BTC/USD pair continue their steep corrections. The Bitcoin price reached its all-time high near the US$65,000 level on April 14, 2021. After reaching the ATH, the price is correcting continuously. In the last 24-hours, the BTC price has dropped by more than -9.50%, and in the last 7-days by -21%.
Bitcoin price is going through one of the steepest corrections in 2021. To add to the woes, BTC/USD pair has broken the psychological barrier at US$50,000 and at press time (on April 23, 2021), it is trading at US$48,217.89. This phenomenon took place at a time when the hash rate dropped by half. Bybt’s data shows that due to the sudden downswing, especially after April 18, US$4.87 billion worth of long BTC positions were liquidated.
Even as the crypto enthusiasts tremble with the fear of loss, large investors are taking advantage of the price action. The supply distribution chart of Bitcoin shows that the whale addresses (the Bitcoin addresses holding millions of dollars worth of BTC) are accumulating fast as the prices drop. In a very short period of time, around 16 new whale addresses (holding anywhere from 100 to 10,000 Bitcoins) have joined the network.
The BTC holding, when seen in numbers may seem insignificant. However, these whale accounts hold anywhere from US$5.40 million to US$540 million worth of the largest cryptocurrency.
In/Out of the Money Around Price (IOMAP) model of IntoTheBlock shows that strong resistance lies ahead of BTC/USD price. The fundamental indicator points out that more than 1.38 million addresses have purchased over 800,000 BTCs within the price range from US$54,250 to US$55,150. The IOMAP cohorts indicate that around the US$50,000 barrier, 560,000 BTC accounts held more than 366,000 BTCs.
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