Rising Bitcoin Whale Accumulation Could Have This Impact on BTC in Q1 2023

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BTC whales have intensified their accumulation over the past eight weeks. Open interest and funding rates revealed that investors harbored bullish sentiments.

Increased whale activity since the start of the new trading year has led to a 26% growth in the price of Bitcoin [BTC]according to a January 14 tweet from Santiment.

Among many metrics foreshadowing this 2023 breakout was the growing number of addresses holding $100-$1,000 BTC. Price pumps usually happen across the market as whales accumulate #Bitcoin. The #1 asset in #crypto is up +26% in two weeks. https://t.co/JMh83m3mIu pic.twitter.com/FiRTLIc3LB

— Santiment (@santimentfeed) January 14, 2023

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Bitcoin whales show their strength

According to the on-chain data provider, the number of BTC whales holding 100 to 1,000 BTC has increased by more than 3% in the past two months. At press time, the count for this cohort stood at 14,110 whale addresses.

When whales stepped up the accumulation of a crypto asset, it often created positive sentiment among other investors. This leads to an increase in demand for the asset, which can, in turn, push up its prices.

Additionally, BTC open interest has been rallying since the start of the year. According to Coinglass data, Open Interest king coins have increased by 13% since January 1, 2023.

Open interest refers to the number of open contracts, or positions, that have not yet been settled. A rise in open interest suggested that more traders and investors were entering trading positions on the asset. This is often taken as a sign of increased demand for the asset, which precedes a rise in price.

Source: Coinglass

Similarly, funding rates on the BTC network since 2023 have been positive, according to data from CryptoQuant.

Source: CryptoQuant

For example, despite the FTX debacle in November 2022 and the subsequent decline in the value of BTC, traders were undeterred and continued to take long positions.

Source: Santiment

Keep that in the back of your mind

CryptoQuant analyst Inspocrypto found that BTC had the biggest inflow of points on January 13, which showed that holders of 1,000 to 10,000 BTC had started sending their holdings to exchanges again.

Realistic or not, here is the market capitalization of BTC in terms of ETH

Although increasing asset trade inflows are often seen as a bearish sign, it could also mean that the asset is becoming more liquid and easier to trade, which can be positive for the market.

On where BTC price might go next, Inspocrypto said,

For bulls, the range between 19,000 and 19,200,000 is key. If they break this range and hold above it, we can go further, heading 23k – 24k. Otherwise, we will retest 15.6k and trade lower levels below 15k.

Source: CryptoQuant

Further, on what BTC holders should expect, another CryptoQuant analyst, TariqDabil, while assessing the BTC adjusted exit profit ratio (aSOPR), said:

To be sure of the price movement ahead of us, we should see a retest of aSOPR’s uptrend, then a (fall) and transition into a downtrend.

Source: CryptoQuant

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