Cryptocurrency analysis platform Santiment has assessed recent developments in the Bitcoin and altcoin markets. The company’s on-chain data reveals that while fear and uncertainty prevail among individual investors, large Bitcoin whales continue to accumulate. According to Santiment analyst Brian, a significant portion of current market indicators support the possibility of an uptrend in the coming period.
Santiment analyst Brian, participating in the Thinking Crypto podcast, evaluated Bitcoin’s price movements in recent weeks, investor sentiment, and the activity of large wallets. The analyst noted that the major cyberattack on Binance and the uncertainty surrounding the US midterm elections have put significant pressure on cryptocurrency investors.
In contrast, Santiment’s data indicates that the market’s largest investors behave differently than individual investors.
Bitcoin Whales Have Accumulated Approximately 100,000 BTC
According to data shared by Santiment, large investors holding between 10 and 10,000 BTC in their wallets have accumulated a total net accumulation of 99,747 BTC since September 18th.
Analyst Brian noted that despite the decline in Bitcoin’s price during this period, large investors continued to increase their assets. He stated that this situation was interpreted as a bullish divergence in on-chain analysis.
Brian added that whale accumulation generally moves in the same direction as the Bitcoin price, but in the current case, there is a clear divergence between the two indicators.
According to the analyst, the fact that large investors continue to accumulate Bitcoin while prices are falling could indicate that current price levels are potentially lower than they should be.
However, Brian noted that whale activity alone does not constitute a definitive bullish signal and should be evaluated in conjunction with other market indicators.
What Do Santiment’s MVRV Data Tell Us?
In Santiment’s analysis, the MVRV indicator, which measures the average profitability of investors, also stood out.
According to the 365-day MVRV data shared by the analyst, Bitcoin investors’ average profitability is around 1 percent. This rate is 5 percent for Chainlink, while Ethereum investors are at an average loss of 7 percent, XRP investors at 10 percent, and Dogecoin investors at approximately 25 percent.
Brian stated that an MVRV reading below zero has historically indicated potential buying opportunities. He explained that the primary reason for this is that selling pressure can decrease over time during periods when a significant portion of investors are experiencing losses.
Bitcoin’s 30-day MVRV indicator is currently around zero. Having dropped to minus 5 percent during the Binance attack, the indicator has risen back to the break-even point as Bitcoin’s price has recovered.
According to the Santiment analyst, this indicates that Bitcoin has not yet reached the extreme profitability zone and there may be room for a new uptrend.
However, Brian expressed caution regarding expectations of a year-end rally and seasonal gains, stating that the historical data of the cryptocurrency market is not broad enough to support such predictions.
*This is not investment advice.
