Bitcoin, the largest crypto asset, is currently at a standstill from the viewpoint of many investors considering current market factors. The crypto mostly traded between $41,000 and $45,500 last week after recovering from a brief dip below $40,000 on January 23. Although the price action has been underwhelming, on-chain data indicates that large holders have been adding more to their wallets, bringing the total number of wallets to the highest it has been in 15 months.
At the same time, the holding pattern indicates smaller whales have been adding to their holdings to join the next tier of holders. It would seem Bitcoin holders have been making moves to push the cryptocurrency up, as indicated by the increasing number of whale wallets. According to on-chain analytics platform Santiment, the number of Bitcoin addresses holding between 1,000-10,000 BTC saw an increase of 47 more wallets representing a 2.5% growth in six days. Consequently, the number of addresses in this tier reached 1,958 on February 1st, its highest point since November 2022.
Furthermore, Santiment data showed the decline of wallet addresses in the tier below. That is, those holding between 100 and 1,000 BTC. The number of wallets in this range dropped by 154 addresses within the same time period, representing a 1.1% decrease. Consequently, the number of addresses in this tier fell to 13,735 on February 1st, its lowest point since November 2022.
The accumulation by a vast number of large holders points to continued faith in the crypto despite the current consolidation, but whale accumulation is only one of many market factors that influence the crypto’s price. Bitcoin’s price trajectory might look unclear at the moment, but the macro outlook points to a positive movement on the fundamental side of things. One of these is the recent capital flows of $1.7 billion into Bitcoin spot ETFs in the past 14 days.
According to crypto analyst Michaël van de Poppe, Bitcoin’s current consolidation could continue in the coming months before the next halving. The analyst noted a resistance at $48,000, to $50,000, and another correction towards $36,000 to $38,000.
In a different perspective, Justin Bennett, another popular crypto analyst on social media, predicted a bearish Bitcoin in the near future. According to him, Tether’s dominance chart suggests a further BTC decline to around $30,000. This price range coincides with analyst PlanB’s absolute Bitcoin price floor of $31,000.
The Battle Continues
As Bitcoin continues its standstill, the battle between bulls and bears intensifies. On one side, the whales and large holders accumulate more Bitcoin, indicating confidence in the market and a potential upward push. On the other side, analysts predict a bearish future, highlighting potential price floors and further declines.
The current market factors make it difficult to determine the exact path Bitcoin will take. However, it is essential to consider multiple perspectives and conduct thorough research before making any investment decisions. The volatility and risks associated with investing in cryptocurrencies demand careful analysis and a proactive approach.
As the crypto market evolves, Bitcoin’s price will continue to be influenced by various factors, including macroeconomic trends, regulatory developments, and investor sentiment. Staying informed and adapting to these changes will be crucial for both bulls and bears in this ongoing battle for Bitcoin supremacy.
Bitcoin is trading at $42,909 at the time of writing. Remember, investing in cryptocurrencies carries risks, and it is recommended to consult with a financial advisor and conduct thorough research before making any investment decisions.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell, or hold any investments, and naturally, investing carries risks. You are advised to conduct your research before making any investment decisions. Use information provided on this website entirely at your own risk.