The leading cryptocurrency, Bitcoin, has continued its weak performance in recent days and is trading around the $74,000 level.
However, despite the weakness in BTC, some Bitcoin holders are not backing down and are continuing to accumulate.
According to cryptocurrency analytics company Santiment, wallets holding between 1 and 10 BTC have accumulated 10,076 Bitcoins in the last two weeks.
Some Investors Continue Buying Bitcoin!
Santiment noted that despite the drop in Bitcoin price and the worsening sentiment among retail investors, small and medium-sized investors continued to make purchases.
According to Santiment, wallets holding 1-100 BTC have continued buying over the past two weeks, accumulating a total of 14,207 BTC. At this point, wallets holding 1-10 BTC have accumulated 10,076 BTC, while those holding 10-100 BTC have accumulated 4,131 BTC.
In contrast, the number of wallets holding more than zero BTC has decreased by approximately 108,700 since October 16th. Santiment stated that small investors are withdrawing from the market due to increasing pessimism.
Citing historical data, Santiment said that large investors who act against the general market are generally profitable. At this point, Santiment noted that similar retail investor capitulations in the past have been seen before major market recoveries. However, he added that accumulation data alone does not confirm that the market has bottomed out.
Retail Investors Are Withdrawing from the Market!
Santiment noted that while some medium and small-sized investors are continuing to hold onto their savings, the number of wallets holding Bitcoin decreased by 109,000. This could be a signal that the retail market is giving in.
According to Santiment, the number of wallets holding BTC has decreased by approximately 108,700 since its peak of 59.99 million on October 16th. This decline is attributed to small investors closing their positions as the Bitcoin price fell below $75,000.
Santiment noted that this type of retail investor withdrawal from the market is considered a typical harbinger of bottom formation, adding that in past cycles, widespread retail exits and peak fear have preceded major rallies.
On the other hand, Santiment notes that Bitcoin balances on exchanges have fallen to approximately 1.28 million BTC, suggesting this could be a sign of increasing supply pressure.
Santiment concluded by stating that Bitcoin holding onto the $74,000-$75,000 support level and regaining the $78,000-$80,000 levels is considered important for a potential recovery. However, the decrease in the number of wallets alone does not confirm that the market has bottomed out.
*This is not investment advice.
