Despite the transfer of over 13,000 BTC from Mt.Gox-related addresses to exchanges, Bitcoin (BTC) managed to remain above key support levels without causing major market disruption. Unlike previous instances where similar shifts resulted in significant price declines, this time the market has shown greater resilience. This resilience is partly attributable to the accumulation activity of large investors, often referred to as whales.

Whales increase Bitcoin holdings

Bitcoin giants have been actively accumulating Bitcoin holdings in recent weeks, which has contributed to the stability of the market. Data from Santiment shows that wallets containing between 100 and 1,000 BTC have received a total of approximately 94,700 BTC over the past six weeks. This significant accumulation reflects the strong confidence these large investors have in Bitcoin’s future price potential, even as new investors grapple with market volatility.

Although Bitcoin’s price continues to fluctuate in a narrow range, the overall market sentiment remains positive. Despite bullish signals, Bitcoin has been struggling to break through the $60,000 mark. The current price is hovering around $59,500, indicating that market participants are taking a cautious approach during this consolidation phase.

The impact of short-term investors on prices

A large part of the selling pressure appears to come from short-term investors, especially those who entered the market in early 2024. Glassnode data shows that when the price of Bitcoin falls below $50,000, most investor assets will be liquidated, which often triggers "panic selling" The market value to realized value (MVRV) ratio of short-term holders (STH) falls below 1.0, indicating long-term losses and potential selling, causing downward pressure on Bitcoin prices.

Key insights for investors

– Continued accumulation by whales is a positive indicator of market confidence. – Despite large BTC transfers from known addresses, market resilience is evident Panic selling by short-term investors can create opportunities for long-term holders A breakout above $65,000 could spark a sustained uptrend.

In conclusion, although the market faces challenges with short-term investor selling pressure, the overall stability and whale accumulation indicate that the downside trend is less obvious. If Bitcoin breaks and holds above the $65,000 level, it may attract new liquidity and may weaken the downside momentum. This continued accumulation of whales is a strong signal that the market is confident in the future of Bitcoin.

Reprinted from CoinWorld.com