Bitcoin touches $28,000 as whales, long-term holders ramp up accumulation

On May 29, 2023

Bitcoin experienced a fleeting spike in the early morning hours on Monday, May 29, briefly surpassing the $28,000 resistance level after spending the better part of May relatively flat. The buying pressure dwindled over the preceding weekend, with Bitcoin stabilizing at $28,800.

Graph showing Bitcoin’s price in May 2023 (Source: CryptoSlate BTC)

Bitcoin’s weekend volatility left most of the market unfazed, with whales and long-term holders ramping up accumulation. The two cohorts, believed by many to be one of the leading drivers of market sentiment, have been committed to accumulation throughout May but have used Bitcoin’s weekend volatility to increase their holdings.

Whale addresses, categorized as addresses holding over 1,000 BTC, have seen an uptick in numbers during the second half of May, culminating over the weekend.

whale address count — Graph showing the number of Bitcoin whale addresses in 2023 (Source: Glassnode)

A similar trend emerged among shark addresses, defined as those holding between 100 BTC and 1,000 BTC, with Glassnode data showing an evident increase.

btc shark address count — Graph showing the number of Bitcoin shark addresses in 2023 (Source: Glassnode)

Furthermore, long-term holders have detected a significant surge in the net realized profit/loss (NPL). This suggests that these persistent investors have spent their coins above their acquisition cost throughout May.

long term holders net realized profit — Graph showing the net realized profit/loss (NPL) for long-term holders in 2023 (Source: Glassnode)

CryptoSlate analysis found that the coins accumulated by these cohorts aren’t likely to hit the exchanges any time soon. A notable decrease and the continuation of the downtrend seen in the sell-side risk ratio from long-term holders indicates that the accumulated Bitcoin is being held for its long-term growth potential.

long term holders sell side risk — Graph showing the sell-side risk ratio for long-term Bitcoin holders from January 2022 to May 2023 (Source: Glassnode)

Despite the ambiguous price behavior we’ve seen over the week, the active accumulation by whales and long-term holders may stabilize the market. While other cohorts, such as shrimp and short-term holders, have also been accumulating, the significant market influence of whales and long-term holders suggests that their accumulation patterns could pave the way for a more solid foundation for future growth.

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