Bitcoin, the leading cryptocurrency, is currently in a holding pattern, with prices hovering between $41,000 and $45,500. However, on-chain data reveals that large holders, known as whales, have been actively accumulating Bitcoin, pushing the total number of whale wallets to its highest level in 15 months.
Large Holders Accumulating Bitcoin
Whale wallets, holding between 1,000-10,000 BTC, saw a significant increase of 47 wallets in just six days, representing a 2.5% growth. This surge brought the total number of wallets in this tier to 1,958 on February 1st, the highest since November 2022.
In contrast, the number of wallets holding between 100 and 1,000 BTC declined by 154 addresses during the same period, representing a 1.1% decrease. This resulted in the number of wallets in this tier falling to 13,735 on February 1st, its lowest point since November 2022.
Market Outlook
The accumulation by a large number of whales indicates continued faith in Bitcoin despite the current consolidation. However, Bitcoin’s price trajectory remains uncertain, with analysts predicting both bullish and bearish scenarios.
Crypto analyst Michaël van de Poppe believes that Bitcoin’s consolidation could continue in the coming months before the next halving. He predicts a resistance level at $48,000 to $50,000, followed by another correction towards $36,000 to $38,000.
On the other hand, Justin Bennett, another popular crypto analyst, predicts a bearish Bitcoin in the near future. He suggests that Tether’s dominance chart indicates a further BTC decline to around $30,000, coinciding with analyst PlanB’s absolute Bitcoin price floor of $31,000.
At the time of writing, Bitcoin is trading at $42,909.
