Bitcoin has been in free fall for some time, from the $40k level to the current $21k level in a matter of weeks.
On the one hand, the price decrease came as a surprise to the market. But on the other hand, it was always expected that BTC would retreat by 2022.
That is possibly why whales are moving in large numbers and carrying out numerous Bitcoin transactions.
Whales appear to be interested in BTC at current price levels, according to Santiment data. They carried out over 12,960 transactions worth more than $100,000 each between 2 p.m. yesterday and 2 a.m. UTC today. This was the most active, with significant amounts observed since May 2021.
“Amount of BTC Transactions Exceeding $100K Hits its mark since May 2021.”
Bears Vs. Bulls
Bitcoin appears to be amidst a fierce battle between bulls and bears at around $22,000. Some analysts believe the coin will bottom out at this level and then reverse direction.
The whale action may confirm this sentiment. However, Bitcoin appears to have dropped below the mentioned level. Bitcoin is currently valued at $21,038, with a market dominance of 44.7 percent. Therefore, it’s unclear whether the whale action will cause the price to rise or fall.
Is This a Period of Accumulation?
Aside from the whales, other relatively small holders are taking note of the current price levels and seeing an opportunity.
According to Glassnode, the number of BTC wallets with 0.01 BTC has reached an all-time high of 10.1 million addresses.
Similarly, more than 0.1 BTC wallets have reached an all-time high of 3.5M addresses.
This could indicate that BTC investors are increasingly accumulating, which could be traced back to the accumulation period of 2020, when companies such as MicroStrategy and Fidelity were purchasing large amounts of cryptos. BTC was trading at roughly the same levels as it is today at the time.