Key Points
- Bitcoin is trading above $66,000 while smaller wallets have been selling off their holdings.
- Despite small wallet sell-offs, overall accumulation of Bitcoin continues, indicating ongoing purchases by larger investors or institutions.
Bitcoin, also known as BTC, is currently trading above $66,000 and is making an effort to return to its recent peak.
Despite this, smaller wallets have been selling their holdings.
Accumulation Continues
However, the overall accumulation of BTC continues, indicating that larger investors or institutions are still buying despite the sell-offs from smaller wallets.
Data from Santiment reveals that smaller Bitcoin wallets have been selling their holdings in recent weeks.
Over 182,000 holders sold their holdings in the past week.
Wallets with less than 0.1 BTC reduced their holdings by 0.46% in the past week, possibly due to attempts at quick profit-making.
Despite this, the pattern of small wallets selling and large wallets accumulating is generally seen as a positive sign.
Large Wallets Accumulating
Wallets with 1,000 or more BTC have seen an increase in their holdings.
At the time of writing, the total number of Bitcoin holders was around 53.8 million.
Bitcoin’s exchange netflow recently experienced its highest negative volume.
On May 15th, the netflow was -22,359 BTC, the highest since December 2023.
Despite the sell-off from small BTC wallets, there is significant ongoing accumulation.
This is generally seen as a positive sign, indicating confidence among larger holders and reducing the available supply on exchanges.
The price trend could benefit from this increased accumulation.
Bitcoin has recently entered the $66,000 price zone and has been struggling to maintain it.
At the time of writing, Bitcoin was trading at around $66,700, a roughly 0.7% increase.
Bitcoin recently flipped its short moving average, which had previously acted as resistance, into support.
The immediate support level was around $64,000 at the time of writing.
