Small Bitcoin Investors Stop Whales from Driving BTC Price Below $18,000

Bitcoin price has avoided a deeper dip below $18,000 in recent months, suggesting that a bottom in the market is forming.

Market analysis

An army of small Bitcoin (BTC) investors have been battling their larger counterparts for months to keep the price above $18,000.

Strong accumulation of Bitcoin among the fish

Notably, there has been some on-chain divergence between so-called whales (entities that hold over 1,000 BTC) and fish (entities that hold relatively smaller amounts of BTC) as Bitcoin continues to fluctuate in the area of ​​$18,000 to $20,000. .

Bitcoin fish accumulated BTC during the sideways trend of the coin. For example, the net supply of Bitcoin held by addresses with a balance of 100 to 1,000 BTC increased from 3.71 million in June to 3.77 million in October, according to data provided by Glassnode.

Entity-owned bitcoin offering with 100 -1K BTC balance. Source: Glassnode

Similarly, the Bitcoin supply held by addresses with a balance of 10-100 BTC also increased from 3 million to 3.15 million during the same period. The pattern is similar across all entities holding between 0.001 and 10 BTC.

Meanwhile, the same period of sideways price movement of Bitcoin coincided with a decline in the supply of BTC held by whales. For example, the supply of Bitcoin held by the cohort of 1,000 to 10,000 BTC has increased from 3.82 million to 3.69 million since June.

Entity-owned bitcoin supply with balance 1K-10K BTC. Source: Glassnode

Furthermore, the 10,000-100,000 BTC cohort reduced their bitcoin holdings from 1.98 million to 1.92 million over the same period.< /p>

A basic interpretation of the on-chain data mentioned above is that the fish are more confident than the whales about an eventual Bitcoin price bottom.