Home >web3.0 >Bitcoin Whales Accumulate BTC During Dip as Market Structure Remains Robust

Bitcoin Whales Accumulate BTC During Dip as Market Structure Remains Robust

WBOY
WBOYOriginal
2024-07-16 09:47:39330browse

In July, Bitcoin saw a noticeable shift in market behavior, with larger investors accumulating more BTC while smaller traders sold off during the dip.

Bitcoin Whales Accumulate BTC During Dip as Market Structure Remains Robust

Highlighting a shift in market behavior during July, larger investors appeared to be accumulating more Bitcoin ( BTC ) while smaller traders sold off their holdings amid the price dip. According to Santiment, there has been a net increase of 261 wallets that now hold at least 10 BTC, indicating long-term confidence despite recent market turbulence.

This development aligns with the broader market trend, as Bitcoin experienced its deepest correction since late 2022, falling below the 200-day moving average (DMA). Glassnode’s report highlights unique characteristics in the 2023-24 Bitcoin cycle compared to previous cycles.

Following an 18-month steady price rise post-FTX collapse, Bitcoin saw three months of sideways trading after a $73k ETF peak. The market experienced its deepest correction between May and July, with a 26% drawdown from the all-time high (ATH). However, this downturn is less severe than in past cycles, suggesting a robust underlying market structure.

When examining Bitcoin's current cycle in the context of previous cycles, such as 2018-21 and 2015-17, it provides a valuable framework for analysis. However, when indexing to the Bitcoin halving date, the current cycle underperforms despite reaching a new cyclical ATH before the April halving, a first in Bitcoin's history.

Analyzing the number of daily drawdowns exceeding 1 standard deviation in an uptrend shows the current cycle has recorded only six such events, suggesting either a shorter, less volatile cycle or potential for further growth. The volume of supply held by short-term holders surged since January 2024, driven by the spot ETFs launch, but has plateaued recently, indicating a shift towards a supply overhang.

Recent Drop to $53k Puts Over 2.8M Bitcoin in Loss

Significant sell-offs, such as the recent drop to $53k, have pushed the volume of coins held at a loss to over 2.8 million BTC, a level only seen once before in the past year. The current correction has seen 20 days where over 2 million short-term holder coins were underwater, compared to 70 days during the severe Q2-Q3 2021 stress period.

The ratio of realized profit to loss has decreased to a range between 0.50 and 0.75, which is normal for bull market corrections. However, there are rapid shifts in this measure that show investor instability beneath it.

This week alone, short-term holders suffered losses of around $595 million, the biggest since the low point of the 2022 cycle. These losses are severe, yet typical when compared with previous bull market corrections.

The above is the detailed content of Bitcoin Whales Accumulate BTC During Dip as Market Structure Remains Robust. For more information, please follow other related articles on the PHP Chinese website!

Statement:
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn