The leading cryptocurrency, Bitcoin (BTC), reached a three-month high as it surpassed $81,000. This led to a shift from bearish to bullish sentiment, with analysis companies noting that data indicated bullish signals.
The cryptocurrency analysis platform Santiment, in its latest analysis, argued that the simultaneous accumulation of large investors (whales) and the exit of individual investors have strengthened the bullish signals.
“As Bitcoin rises to $81,700, the most favorable bullish combination for May is occurring, with key stakeholders accumulating and retail investors selling. This reinforces the bullish signals.”
At this point, Santiment noted that, according to the data, large investor wallets holding between 100,000 and 10,000 BTC accumulated a total of 16,622 BTC (approximately 0.12%) this month. In contrast, small retail investor wallets holding less than 0.01 BTC sold 28 BTC (approximately -0.05%).
Strong Bullish Signal!
According to Santiment, this trend is interpreted as a typical pattern seen in the early stages of a bull market.
Santiment justified this by pointing out that periods when large investors accumulate wealth and individual investors exit the market are generally seen as periods when upward momentum strengthens.
“Historically, the strongest rallies in the cryptocurrency market have occurred when smart investors add more coins to their wallets while smaller wallets withdraw from the market. The accumulation by large investors and the selling tendency of retail investors have historically coincided with periods of strong bull markets.”
Although the current sample period is short, it is a positive enough signal to justify further increases.”
*This is not investment advice.
