Bitcoin 'fishes' are accumulating but can this form a BTC price bottom?
) investors has been fighting with their larger counterparts for months to keep the price above $18,000.Notably, there has been some on-chain divergence between so-calledBitcoin fishes have been accumulating BTC during the coin's sideways trend. For instance, the net Bitcoin supply held by addresses with 100-1,000 BTC balance has increased from 3.71 million in June to 3.77 million in October, according to data provided by Glassnode.
Meanwhile, the same period of Bitcoin's sideways price action has coincided with a decline in BTC supply held by whales. For instance, the Bitcoin supply held by the 1,000-10,000 BTC cohort has dropped from 3.82 million to 3.69 million since June.Additionally, the 10,000-100,000 BTC cohort has decreased its Bitcoin holdings from 1.98 million to 1.92 million in the same timeframe.
A basic interpretation of the on-chain data mentioned above is that fishes are more confident than whales about aBut while these small investors may have been absorbing massive selling pressure created by larger investors, the downside risk is historically greater with a decreasing whale population, as shown below.Interestingly, one of the few exceptions is when Bitcoin's reached its all-time high price of $69,000 while the number of whales remained relatively flat.