Key facts:
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Currently only 1,737 wallets hold more than 1,000 bitcoins.
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Accumulation between these holders continues to decline, which would have an effect on the market.
The amount of bitcoin (BTC) held by addresses listed as “whales” is decreasing. There are currently only 1,737 wallets with a balance of more than 1,000 bitcoins, which is the lowest point reached in 22 months.
The data provider Glassnode, sample that, on May 28, the number of bitcoin whales reached its lowest level since 2020. And they could continue to decline, even one of them left the market after May 25.
Generally, a drop in the number of bitcoin whales indicates a lack of confidence regarding where the price is heading of the cryptocurrency.
Let us remember that the term “bitcoin whales” is the name that the ecosystem gives to the large accumulators of the main cryptocurrency by market capitalization, as detailed in the CryptoNoticias glossary.
So, with these entities going to exchanges to offload their holdings, there is a clear bearish sign as the cryptocurrency falls to its lowest price levels this year and suffers to return to USD 30,000.
At the time of publication of this note, the price of bitcoin is in the order of USD 29,300, according to the CryptoNews calculator. The cryptocurrency has had a recovery of just 0.88% in the last 24 hours, although it is still in the red when it comes to price in the last 7 days, with a loss of almost 3%.
In fact, bitcoin has lost more than 50% of its value in the last six months amid a sector-wide decline that has wiped more than $1.5 billion off the global cryptocurrency market capitalization since then.
With more whales liquidating their bitcoins, will the price decline accelerate further?
In that sense, some analysts believe that this bear market will remain so for a long time. It is precisely what the analyst points out Ali Martínez who believes that the price of the cryptocurrency can continue to decline.
Martínez he pointed on Twitter that the most significant support level for bitcoin is between $29,330 and $30,200, where more than 1.4 billion addresses hold nearly 860,000 bitcoins.
Bitcoin needs to stay above this wall of demand to have a chance to recover. “Failure to do so may lead to a continuation of the downtrend,” he added.
However, as we have previously published in CriptoNoticias, some Signs show that the bitcoin price will not go below $20,000 again. This mark is important for the history of the price of the cryptocurrency.
Historically, the reduction in bitcoin issuance (halving roughly every 4 years through the halving) has been accompanied with increases in the price levels of the cryptocurrency.
In the current cycle, after the 2020 halving, so far, there has been a cap above $69,000. And in the previous one, the maximum had been precisely around 20,000.