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Data on the channel shows that small bitcoin holders have accumulated recently as whale stocks have declined, a sign that can be bullish in the long run.
Bitcoin investors with 0-1,000 coins have grown their assets recently.
As a Twitter user has pointed out using data from Santiment, holders with wallet amounts in the 0-1,000 coins range have aggressively accumulated at recent lows. The relevant indicator here is the "supply distribution of Bitcoin," which tells us which portfolio groups hold which percentage of the total offer at this time.
Portfolios (or more simply purses) are divided into pockets according to how many coins they currently hold. For example, the cohort of 1 to 10 pieces includes all addresses that currently carry 1 or more and 10 btc or less. The supply allocation measure for this group measures the aggregate balance of all portfolios within this range.
Now here is a chart which shows the trend in Bitcoin Supply Distribution data for 0-1,000 coins and 1,000-1,000 bands of coins:
Looks like the values of the metric for the two groups have moved oppositely to each other in recent days | Source: ?igMak on Twitter
As you can see above, the supply distribution curve of Bitcoin for the 1,000-1,000,000 strip coins has seen a marked decline lately. The holders belonging to this group are the whales, which means that the percentage of the supply held by these humongous holders has been going down, suggesting that they have been capitulating during this deep bear market.
The supply share held by the 0-1,000 coins group, on the other hand, has rapidly increased recently, implying that retail investors have been accumulating large amounts during the recent lows in the price of the asset.
From the chart, it is clear that such a trend was also observed in the bearish market of 2018-19, even though the range of movement of these two groups was much lower. It is interesting to note that this pattern did not manifest itself in this bear until after the economic trough was reached for the BTC.
Thus, if history is anything to go by, this recent accumulation from the 0-1,000 coins group could help Bitcoin form the bottom for the current cycle (if it’s not already in), and therefore reverse the coin towards a bullish trend in the long term.
At the time of writing, Bitcoin’s price floats around $16,800, up 1% in the last seven days. In the past month, the value of cryptography has increased by 2%.
The value of the crypto seems to still be stuck in a sideways trend | Source: BTCUSD on TradingView
