- Despite high whale accumulation, selling sentiment remained dominant in the market.
- A few of the metrics looked bearish on BTC, suggesting a possible trend reversal.
The last week remained profitable for Bitcoin [BTC] investors as the king of cryptos’ price rallied substantially. Meanwhile, the latest data revealed that BTC whales stockpiled even more tokens, reflecting their confidence in the coin.
Bitcoin accumulation is rising
CoinMarketCap’s data revealed that the king of cryptos’ price shot up by more than 8% in the last seven days. The hike in Bitcoin’s value helped it once again go above the $42,000 mark.
At the time of writing, BTC was trading at $42,990.34 with a market capitalization of over $843 billion.
However, a popular crypto analyst has pointed out an interesting development.
As per the tweet, there were around 67 new entities with 1,000 BTC or more, which was a 4.50% rise in just a matter of two weeks. This means that when prices retraced after crossing $48k following the ETF approval, whales were busy hoarding.
— Ali (@ali_charts) January 30, 2024
Since whale accumulation directly suggests that big players in the crypto space are confident in BTC, AMBCrypto planned to check the overall market sentiment.
Our analysis of CryptoQuant’s data revealed that BTC’s exchange reserve dropped last week. An outflow of coins from exchanges means buying pressure is high.
However, not every metric had a similar reading. Santiment data clearly suggested that while the whales accumulated more BTC, the shrimp and fish had different plans.
This was evident from the data, as the charts of addresses with a balance of 0-0.01 and addresses with a balance of 0.01-0.1 somewhat dropped last week.
What to expect from Bitcoin?
Apart from this, the fact that selling sentiment was dominant in the market was also revealed by a few other metrics. For instance, both BTC’s Coinbase premium and Korea premium were red, meaning that Korean investors and US investors were selling BTC.
Bearish sentiment around BTC also prevailed in the market over the last few weeks as its weighted sentiment graph dropped after registering a massive spike on the 10th of January 2024.
A similar trend was also noted in terms of its MVRV ratio, which also indicated that BTC’s price growth might witness a halt in the coming days.
While assessing BTC’s price action, it’s also important to take a look at its derivatives market. BTC’s Binance funding rate dropped over the last few weeks, suggesting that derivatives investors were reluctant to buy BTC.
Read Bitcoin’s [BTC] Price Prediction 2024-25
Additionally, while BTC’s price increased in the recent past, its open interest dropped. A decline in the metric indicates that the possibility of a trend reversal is high.
In fact, the trend reversal might just have started, as in the last 24 hours, Bitcoin was down by nearly 1%.