Accumulation By Bitcoin Whales Suggests That The Pre Halving BTC Rally Will Continue

The Bitcoin price continues to fluctuate around the $70,000 resistance level, yet on-chain data indicates that market participants are gearing up for a more robust rally.

Source:www.birgun.net

The price of Bitcoin surpassed $71,000 for the first time since March 15, buoyed by capital inflows into spot BTC exchange-traded funds (ETFs). According to data, BTC has climbed over 0.55% in the past 24 hours, reaching a weekly peak of $71,582 on March 26th. Multiple factors are driving the current price momentum of BTC, including steady inflows into spot Bitcoin ETFs, the forthcoming Bitcoin halving, and the generally optimistic sentiment among institutional investors. Now, let's delve into the elements contributing to Bitcoin's rise on March 26th.

Bitcoin Whales Continue To Accumulate More BTC

Big Bitcoin investors have been boosting their holdings in anticipation of future price rises. According to data from market intelligence firm Santiment, the proportion of wallets holding between 1,000 BTC and 10,000 BTC has risen from 23% on January 1 to 25.17% on March 26. Furthermore, there has been a noticeable surge in the percentage of wallets holding between 10,000 BTC and 100,000 BTC, which jumped sharply from 11.68% on March 2 to 12.42% on March 21, before slightly declining to the current level of 11.98%. The accumulation of Bitcoin by whales is corroborated by a decrease in BTC deposits on exchanges. According to data, the number of deposit transactions into identified exchange wallets began to decline on March 5, coinciding with BTC's price surpassing $69,000. This downward trend persisted on March 19, despite a price drop of over 9% that day, resulting in deposits to exchanges decreasing from 109,420 transactions to 55,505 by March 25.

The declining transfer of BTC to exchanges indicates a diminished inclination to sell, typically considered a bullish indicator. However, there has been a rise in the number of whales moving Bitcoin from exchanges. On March 11, Whale Alert, a blockchain tracker and analytics firm, highlighted numerous transactions involving substantial amounts of BTC being moved from exchanges to self-custody wallets. The declining transfer of BTC to exchanges indicates a diminished inclination to sell, typically considered a bullish indicator. Conversely, there has been a rise in the number of whales moving Bitcoin from exchanges. 

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.