With Bitcoin approaching the $70,000 mark, whale wallets are accumulating BTC at a pace reminiscent of the period from July 2020 to January 2021, when Bitcoin surged by 550%.

According to Woominkyu, a verified author on CryptoQuant, this historical pattern is generating excitement among investors about the possibility of a significant BTC breakout.

The current Bitcoin whale ratio on spot exchanges is similar to the ratio observed in July 2020, following the COVID-induced market crash in March.

The author pointed out that whales are continuing to accumulate BTC despite short-term price fluctuations, positioning themselves for a long-term price increase. In an X post, Woominkyu noted:

“Whales are ready to welcome "FOMO" by dumb money.”

Previously, Cointelegraph reported that whale wallets had accumulated over 1.5 million BTC in the last six months, with each wallet holding more than 1,000 BTC, equating to $68 million at the current value.

CryptoQuant CEO Ki-Young Ju highlighted that new whale wallets, with an average coin age of less than 155 days, have reached a new peak of 1.97 million BTC.

A key distinction between these whale wallets and those on spot exchanges is that these are non-miner wallets and are possibly custodial. Regarding the net-return of these wallets, Young-Ju stated:

“Their BTC balance surged 813% YTD, taking up 9.3% of the total supply, valued at $132B today.”

While whale wallets indicate a positive outlook for the future, long-term holders and miners may continue to apply some resistance to Bitcoin’s price.

IT Tech, an on-chain analyst at CryptoQuant, suggested that long-term holders might be stabilizing or taking profits.

Additionally, miners’ profit sustainability has improved recently, which means they are adjusting payment periods, often aligning with Bitcoin price peaks.

However, the analyst also noted that short-term holders are moving toward accumulation, suggesting the market could absorb potential selling pressure.

The analyst remarked:

“Monitoring STH, LTH, and miners is crucial. Shifts here can impact BTC’s next move as the market watches for renewed accumulation or profit-taking.”

Sources:

https://cointelegraph.com/news/bitcoin-whales-current-accumulation-trend-emulates-2020-2021-s-550-rally

https://x.com/Woo_Minkyu/status/1847116097717416231

https://x.com/ki_young_ju/status/1846556017880146040

https://cryptoquant.com/insights/quicktake/6711139ffb0ff075544ce00b-Rally-or-Trap-Long-Term-Holders-and-Miners-Might-Have-the-Answer