In his latest week 23-edition of the Blockware Intelligence newsletter, on-chain analyst Will Clemente reports that holders with more than 1,000 Bitcoin (BTC), also known as whales, have finally started buying again after months of sell-offs. According the analyst this could signal a change in Bitcoin’s market structure. Market is looking good at the moment, he says:
“First, we’ll talk about supply. Illiquid supply shock ratio continues to climb. This means that coins are moving from entities that hold less than 75% of the coins they take into entities that hold more than 75% of the coins they take in. In laymen’s terms, this shows that coins are moving to strong hands.”
He adds:
“Whales had been distributing since September, but it seems that this week they are finally adding to their holdings (see an uptick in blue circle). A very interesting trend to watch for continuation over the coming weeks.”
Clemente adds that the big players in the market still dominate Bitcoin’s transaction volume and since 2020have been able to increase their share.
“On a side note about large market participants: large transactions are currently dominating volume. This is a trend that has been growing for over a year now. Since 2020, the big boys are here and their share of transfer volume is only growing. This is also likely a reflection of transaction batching becoming more popular with major exchanges.”
The analyst further notes that says that fat-cat investors on Coinbase were partly accountable for giving Bitcoin’s price a little push. They had a hand in keeping the the $30,000 BTC support level, he concluded:
“After breaking below $40,000 support, BTC now faces $40,000 as a heavy resistance level. Below, support remains $30,000 across several timeframes, but the area seems to have been front-run for now.”
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Source: Igaming
