- Despite the large accumulation of whales, selling sentiment remained dominant in the market.
- A few of the metrics looked bearish on BTC, indicating a possible trend reversal.
The past week remained profitable for Bitcoin [BTC] investors, as the price of the king of cryptos rose significantly. Meanwhile, the latest data revealed that BTC whales had stockpiled even more tokens, reflecting their confidence in the coin.
Bitcoin accumulation is increasing
CoinMarketCaps facts revealed that the price of the king of cryptos has risen by more than 8% in the past seven days. The rise in Bitcoin’s value helped it move above the $42,000 mark again.
aAt the time of writing, BTC was trading at $42,990.34 with a market cap of over $843 billion.
However, a popular crypto analyst has pointed out an interesting development.
According to the tweet, there were approximately 67 new entities with 1,000 BTC or more, representing an increase of 4.50% in just two weeks. This means that whales were busy hoarding as prices returned after crossing $48,000 following the ETF approval.
While some trembled in fear during the recent price correction, #Bitcoin whales piled up more $BTC!
About 67 new entities now own 1,000 #BTC or more, which means an increase of 4.50% in two weeks. pic.twitter.com/tje3fhznRR
— Ali (@ali_charts) January 30, 2024
Since the accumulation of whales directly indicates that major players in the crypto space have confidence in BTC, AMBCrypto planned to monitor general market sentiment.
Our analysis of CryptoQuant data showed that BTC’s foreign exchange reserve fell last week. An outflow of coins from exchanges means that buying pressure is high.
Source: CryptoQuant
However, not every metric had a comparable value. Data from Santiment clearly suggested that while the whales were collecting more BTC, the shrimp and fish had other plans.
This was evident in the data, as the graphs of addresses with a balance of 0-0.01 and addresses with a balance of 0.01-0.1 have fallen slightly over the past week.
Source: Santiment
What can you expect from Bitcoin?
Apart from this, the fact that selling sentiment was dominant in the market was also reflected in some other metrics. Both, for example BTC‘s Coinbase premium and Korea premium were red, meaning Korean investors and US investors were selling BTC.
Source: CryptoQuant
Bearish sentiment surrounding BTC has also prevailed in the market in recent weeks, as the weighted sentiment chart fell after a huge peak on January 10, 2024.
A similar trend was also noticed in terms of the MVRV ratio, which also indicated that BTC price growth could come to a halt in the coming days.
Source: Santiment
When assessing BTC’s price action, it is also important to look at the derivatives market. BTC’s Binance funding rate has fallen in recent weeks, indicating derivatives investors have been reluctant to buy BTC.
Read Bitcoins [BTC] Price prediction 2024-25
Moreover, while BTC‘s price has risen in the recent past, but open interest has fallen. A drop in the metric indicates that the likelihood of a trend reversal is high.
In fact, the trend reversal may have just begun, as Bitcoin is down almost 1% in the past 24 hours.
Source: Coinglass