Bitcoin Metrics Flash Bullish Signals Amid Whale Accumulation

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Key bitcoin metrics are flashing positive signs of renewed accumulation by large investors, even as prices show signs of short-term exhaustion. Data from analytics provider Glassnode indicates the number of addresses holding at least one bitcoin reached an all-time high this week. Meanwhile, data from Santiment shows increased accumulation of BTC and stablecoins by whales.

According to Glassnode, the total number of Bitcoin addresses with balances topped 1.02 million, surpassing the previous record high set on September 25. The milestone signals broadening participation in the network at a time when many smaller holders dropped out amid bearish macro conditions.

Santiment identified a rise in whale Bitcoin holdings

Santiment also identified a notable rise in whales’ bitcoin holdings, defined as wallets with 10 to 10,000 BTC. Their accumulated holdings of over 13 million BTC mark the highest level so far this year. At the same time, tether whale accumulation is rising, suggesting increased buying power.

Some analysts view the combined trends as fundamentally bullish indicators of renewed institutional conviction. However, they note that near-term risks remain while longer-term upside potential builds.

The positive whale activity comes after bitcoin breached $27,000 on Thursday for the first time since September. But as short-term momentum pushed the price up sharply, profit-taking also increased.

With bitcoin’s 7-day MVRV metric now falling below zero, some expect a healthy pullback as traders lock in gains. But when that exhaustion passes, analysts believe fresh whale capital lies ready to spark the next leg higher.

Of course, bitcoin has seen head fakes this year where a burst of volatility fizzled out. But current whale behavior increases the odds of a more sustained upswing as deep-pocketed investors step in.

Still, analysts caution against reading too much into volatile swings without context. While whale movements reflect rising institutional conviction, macro-uncertainty persists. And technical resistance looms around the $30,000 mark despite bullish supply dynamics.

For regular investors, the bigger picture remains key. And the latest data adds to the evidence that patient money is steadily positioning for an impending bitcoin price bottom. Though the exact timing remains unclear, indicators continue to trend favorably from a long-term perspective.