Bitcoin Sharks and Whales are relentless in accumulating the flagship crypto despite its unimpressive price action. These categories of investors have reportedly increased their Bitcoin positions over the past five months. This is undoubtedly optimistic for the Bitcoin ecosystem and could soon have an effect on the price of Bitcoin.
Bitcoin investors bought 154,560 BTC in the last five months
On-chain analytics platform Santiment revealed in an X (formerly Twitter) job that Bitcoin Wallets holding at least 10 BTC have added another 154,560 BTC in the last five months. The platform noted that this purchase is significant as it is one of the “leading crypto leading indicators” when it comes to bullish signals for flagship crypto.
Feeling further mentioned that cryptocurrencies rise every time these Bitcoin wallets accumulate and a prolonged bear market occurs every time they offload their holdings. It means that Bitcoin and other crypto tokens could rise soon enough, with these Bitcoin investors currently increasing their positions.
These whales are generally known to have a significant impact on the market, as their purchases could trigger a significant surge in the price of Bitcoin. In the meantime, the continuation of this accumulation trend is crucial, because on-chain analytics platform Glassnode suggested that Bitcoin failed to surpass $70,000 due to a lack of demand for the flagship crypto.
As such, these Bitcoin investors could help increase demand for Bitcoin if they can maintain this accumulation trend. Bitcoin should finally reach a successful breakout above $70,000 as it happens.
THE in chain CryptoQuant analysis platform also recently provided a bullish outlook for Bitcoin. A market analysis on the platform noted a notable increase in the number of new participating Bitcoin accumulation addresses even though the flagship crypto has not seen any significant increase in its price over the past month.
Bitcoin still far from its peak
In other blog post On the CryptoQuant platform, crypto analyst Tarekonchain mentioned that Bitcoin is still far from its peak. He made this assertion based on MVRV (market value to realized value) indicator, which the analyst says gives a “very accurate alert for Bitcoin price ups and downs.”
According to Tarekonchain, an MVRV value below 2 indicates a continued accumulation zone, meaning Bitcoin is still undervalued. He added that Bitcoin only begins its path to a new high when the MVRV value exceeds 2. He revealed that the MVRV value is currently at 2.3, indicating that it is still possible for the price of Bitcoin to rise significantly before reaching its fair value.
The price of Bitcoin would have reached a peak in previous cycles when the MVRV indicator reached a value of 3.5 or more, proving that the flagship crypto is still far from its peak in this bull run. Tarekonchain predicted that Bitcoin could yet reach a new high in this cycle and maybe exceed $100,000.
Featured image from Pexels, chart from TradingView
