Bitcoin (BTC) is down 30% from its peak of $126,200, trading just above the $85,000 support and fueling concerns of a deeper pullback towards the $70,000 region. However, onchain data shows that institutions and high net worth individuals are accumulating BTC.
Key data for the van:
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Bitcoin sharks have been aggressively piling up at 2012-level rates, signaling a bearish buying trend.
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Heavy selling in long-term and OG puts continues to limit upside, keeping near-term downside risks elevated.
Mid-sized Bitcoin traders add 54,000 BTC in a week
Bitcoin “sharks,” entities holding between 100 and 1,000 BTC, increased their collective holdings to about 3.575 million BTC from roughly 3.521 million BTC over the past seven days, absorbing about 54,000 BTC from smaller holders, according to Glass knot.
The move marked the fastest pace of shark accumulation since 2012, indicating strong conviction among high-net-worth individuals and institutional players despite BTC’s 30% drop.
Related: Bitcoin to hit new all-time high within 6 months: Grayscale
In 2012, a comparable surge in Bitcoin accumulation preceded one of its earliest major surges, with BTC climbing to above $100 from roughly $10 within a year, marking an increase of approximately 900%.
A similar pattern played out in 2011, when aggressive accumulation by mid-caps followed Bitcoin’s 350% rise to over $14 from under $3.
A repetition of this historical fractal would favor further growth.
Bitcoin is facing selling pressure from long-term holders
Whales with holdings over 10,000 BTC proved to be the main driver of the sell-off over the past two months, highlighting that the buying power of the sharks was insufficient.
That imbalance aligns with Capriole Investments’ assessment that record institutional buying has been offset by equally historic long-term ownership allocations.
Founder Charles Edwards he wrote in a post on Tuesday:
“While institutional buying on Coinbase has reached unprecedented levels (Z-score 15.7), it is being absorbed by ‘OG’ whales and long-term holders selling at rates not seen in years (Hodler’s growth rate at 0.6 percentile).”
The price increase could be limited until the large distribution of older coins subsides, he added.
Adding to the negative outlook, veteran trader Peter Brandt pointed to Bitcoin’s recent drop below its parabolic support, a move that has historically seen prices drop by around 80%. In other words, the BTC price could reach as high as $25,000 if the fractal repeats.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision. Although we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph shall not be liable for any loss or damage arising from your reliance on this information.
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