Bitcoin Key Whale Addresses Skyrocket To 6-Month High Despite Bearish Sentiments

Why Whales' Movements Have Yet to Fully Reflect on Bitcoin's Price Action

Bitcoin (BTC) saw some new lows in August and several other crypto assets. Notwithstanding, despite the recent blows the asset has suffered of late, it appears BTC accumulation trends are looking favourable. The number of BTC key whale addresses has seen a massive growth.

BTC key whale addresses have surged to 15,847

Crypto behaviour analytics platform Santiment released a chart indicating the accumulation trend of BTC whale addresses (holding 100 to 10,000 coins). According to the chart, BTC saw a sharp increase in the number of these whale addresses in the past 30 days. The chart indicated a rise of up to 103 more whale addresses within that time.

The last time BTC witnessed such a surge was in February, when the asset was trading between $38k and $44k. The 103 increase in gigantic whale addresses brings the total number of addresses holding 100 to 10,000 BTC to 15,847. This whale accumulation comes when BTC has broken below the $20k support. Sentiments have also remained generally bearish of late amidst inauspicious market realities.

As noticed on the chart, there appears to be a massive correlation between the price of BTC and the growth in the number of whale addresses. The previous rally of November 2021 was in tandem with a significant increase in whale addresses. As the rally lost steam in the preceding months, there was a respective decrease in whale addresses. This recent surge could be a promising indicator of an imminent breakout.

Powell’s speech contributed to BTC’s current dip

Bitcoin has fallen alongside the rest of the crypto markets following hawkish comments from Federal Reserve Chair Jerome Powell. The effects of Powell’s speech have also been observed in the traditional stock market. Major stocks took a nosedive on Friday, with the losses spilling to the weekend.

Before Powell’s speech, the markets had been hanging on by a thread. The comments from Powell pushed the markets further below. Bitcoin (BTC) broke below the $21k zone on August 27, with $20k as the last line of defence. However, the weekend brought further dips, as BTC fell below the $20k support.

The asset had been consolidating around this zone on Sunday. However, it has not traded above the $20k level throughout Monday, pumping in more fears of further declines. Notable crypto analyst ‘il Capo of Crypto’ had forecasted a price target of $16k in the coming weeks.

According to him, should BTC touch $19k, the community should regard that as an indication of a price trigger to $16k. At the time of writing, BTC currently trades at $20,053, with a 7.36% decrease in the past seven days.

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