Analysis: As Bitcoin retraces 30%, the "shark address" is accumulating positions at the fastest pace in 13 years.
TL;DR
Bitcoin's 30% retracement to $85,000 sees 'shark addresses' accumulating BTC at the fastest pace since 2012, but selling pressure from larger whales and technical breakdowns may limit short-term price gains.
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On December 16, according to Cointelegraph, as Bitcoin retraced about 30% from its high of $126,200 and hovered near the key support level of $85,000, on-chain data showed that mid-sized holders and some institutional funds were accelerating their accumulation of Bitcoin.
Glassnode data shows that "shark addresses" holding 100-1,000 BTC have increased their holdings by approximately 54,000 BTC in the past week, raising their total holdings from approximately 3.521 million to 3.575 million BTC. This is the fastest pace of accumulation since 2012, indicating significant buy the dips behavior despite the sharp correction.
However, the market's upside potential remains constrained by selling pressure from larger holders. Data shows that long-term and "OG"whale holding more than 10,000 BTC have been continuously reducing their positions over the past two months. Charles Edwards, founder of Capriole Investments, pointed out that record institutional buying is being absorbed by long-term holders at a rate unseen in years, which may continue to suppress Bitcoin's price performance in the short term.
In addition, veteran trader Peter Brandt warned that Bitcoin has broken below a key parabolic support level, and if historical patterns repeat themselves, there is a risk of a deeper correction.