In its latest assessment of the Bitcoin market, cryptocurrency analytics company Santiment stated that the behavior of large investors (identified as whales and sharks) plays a critical role in determining market direction.
According to the company, crypto markets often follow the path taken by large wallets, while reversing the movements of small individual investors.
According to Santiment data, whale and shark addresses holding between 10 and 10,000 BTC have accumulated a total of 56,227 BTC since December 17th. While this process is seen as signaling a local bottom for Bitcoin, it is stated that despite the market trading sideways for a while, this strong accumulation makes at least a limited upward breakout inevitable over time.
The analysis noted that the picture has become even more positive in the last 24 hours. The profit-taking by individual investors with balances below 0.01 BTC indicates the formation of an expectation of a “bull trap” or “deceptive rally” in the market, which, according to Santiment, has historically been a supportive signal for the market.
Santiment stated that current conditions indicate the crypto market has entered what it describes as a “green zone,” suggesting a higher-than-normal probability of growth in total market capitalization in the coming period. However, the analysis added that no scenario is guaranteed, warning that whales could quickly change strategy and engage in profit-taking. The company also reminded that these positive zones can sometimes last for weeks, while at other times they may be limited to just a few days.
*This is not investment advice.
