Bitcoin Breaks Above $28,000, Will Sharks & Whales Continue To Back Rally?

Bitcoin has broken above the $28,000 mark as on-chain data shows the key BTC wallets have been accumulating during the last few weeks.

Bitcoin Sharks & Whales Have Been Accumulating During Past Month

According to data from the on-chain analytics firm Santiment, the large BTC wallets have accumulated a combined $1.17 billion in the cryptocurrency since the start of last month.

The relevant indicator here is the “Supply Distribution,” which keeps track of the total number of coins that each investor cohort in the market is holding right now.

The holders or addresses are divided into these groups based on the amount of BTC that they are carrying in their balance currently. The 1-10 coins cohort, for instance, includes all investors holding at least 1 and at most 10 BTC.

In the context of the current discussion, there are three groups of interest: 10-100 coins, 100-1,000 coins, and 1,000-10,000 coins.

The below chart shows the trend in the amount of supply held by these cohorts over the last six months:

The largest of these groups includes the “whales“, who are among the most influential entities on the network due to the large amounts that they hold. The middle cohort is sometimes referred to as the “sharks” and these investors also carry significant amounts, but their power is clearly lesser than the whales.

The smallest group, the 100-1,000 coins group, includes holders smaller than the sharks and whales, but these investors still make up a notable segment of the market.

From the graph, it’s visible that all three of these groups have participated in a net amount of accumulation since the start of September. In total, these cohorts have bought BTC worth about $1.17 billion.

During the period that these cohorts had been accumulating, Bitcoin’s price was struggling to put together lasting bullish momentum, but these investors nonetheless persisted and continued to buy at the low prices.

It would appear that their accumulation efforts have paid off, as Bitcoin has just observed a strong rally.

Bitcoin Has Broken Above $28,000, But Will Profit-Taking End The Rally?

BTC has observed some sharp upward momentum during the past day as the asset has managed to breach the $28,000 level for the first time since the middle of August.

Santiment notes that a return to the $30,000 level is looking more and more likely. That would only be, however, if the aforementioned key investors don’t start selling to take their profits here.

So far, these large holders have held off on any dumping, but it’s uncertain how long that may remain true. The holdings of the sharks and whales, especially, can be worth watching in the coming days, as their behavior may end up influencing where the cryptocurrency goes from here.