Bitcoin has seen $BTC the largest accumulation rate since 2012, with holdings of 'Bitcoin' — investors holding between 100 and 1,000 BTC — rising to about 3.575 million Bitcoin over the past week, absorbing 54,000 BTC from smaller holders, according to Glassnode data.
This standard rate of accumulation comes despite the decline in the price of Bitcoin by 30% from its peak of $126,200, currently trading above the support level at $85,000, raising concerns of a potential drop towards $70,000.
Similar accumulation waves were recorded in 2012 and 2011 before historical rallies, where the currency jumped by 900% and 350% respectively, putting the market in front of the possibility of a new ascent if this historical pattern repeats.
However, large investors (“whales”) who own more than 10,000 Bitcoins continue to sell them aggressively, limiting the strength of any short-term rally. Charles Edwards, founder of Capriole Investments, noted that standard institutional purchases are quickly absorbed by the old whales and long-term holders, while seasoned trader Peter Brandt warned that Bitcoin's recent break of its parabolic support could lead to further declines.
