The number held by wallets that hold less than 1 bitcoin is increasing. This can be seen from data available at Glassnode, the on-chain market intelligence platform. This data seen by Cryptoinfowatch shows that the trend has been consistent since Bitcoin was invented.
Currently, entities holding less than 1 BTC are increasing. Even though this does not correlate with the recent price of Bitcoin, what is obvious is that the whales are holding their bags while the fishes are buying. This is the view of Mr Harel @harel260105, who inferred that this is not a good sign for the coin market.
An Opportunity for Non-Holders
Another perspective to this is that the coin market is presently at a historically low level. This opens an opportunity for non-holders of Bitcoin to take up position in the market, considering the chances of a rebound judging from past trends of dips and highs.
Blockchain analysis data also shows that the exchanges are experiencing inflow not seen since the past 3 months. This is an indication that more people are selling BTC than those buying it. In any case, what is obvious is that the supply held by weak hands is increasing. This does not imply that the whales are exiting. Judging from the antecedence of BTC, a rebound is possible although no one is certain that the strong $32k support would stop the slide towards $10k.
Are Whales Selling?
Another way of interpreting the Glassnode data is that the whales may actually be selling, thereby increasing the number of plebs holding less than 1 BTC. After all, if a whale sells 5 1/2 out of 6 bitcoins, they would reflect on the data as having less than 1 bitcoin.
Since there’s a reason why they are the whales, it is an indication that this is the time to hold. What is obvious from all this is that the whales will work at pushing the price of BTC lower by dumping more coins. This will give them the opportunity of buying back from the weak hands at lower prices. The implication is that Bitcoin will see lower prices in the coming weeks or months.
Photo image: Glassnode
Credit: Bitcoin Archive