Bitcoin investors increase holdings as price plummets record inflow observed
Bitcoin long-term investors are taking advantage of the recent price crash by accumulating record amounts of BTC. “Accumulation Addresses” have reportedly acquired over 12,700 BTC and 20,000 BTC, according to two sources.
Ali Martinez first reported that the labeled “accumulation addresses” received 12,700 BTC in the last 24 hours, valued at $840 million. Meanwhile, long-position traders have suffered losses of nearly $400 million as over $136 billion exited the cryptocurrency market.
Luke Mikic later confirmed the same metric, showing an unprecedented 20,000 BTC inflow to “accumulation addresses.” This chart displays historical data from 2014, showcasing the highest influx to long-term holders.
Despite this positive accumulation trend, Bitcoin has been displaying bearish signals recently. Bitcoin miners have been selling at an increased rate in recent months, reminiscent of the previous bear market. These entities have been mining Bitcoin at a cost below the average price for years.
Martinez also warns of a potential double-top pattern forming in Bitcoin’s monthly chart, aligning with the highs seen in 2021. Additionally, the “TD Sequential,” a technical indicator, has presented a bearish sell signal.
The conflicting data and indicators demonstrate the challenges of accurately predicting Bitcoin’s price action. Investors are advised to practice proper risk management and exercise caution when dealing with such a volatile asset that can easily be influenced by large holders.
