Bitcoin Hits Four-Month High as Whales Step In, But Are There Troubles Ahead?

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Addresses holding 1,000 to 10,000 BTC increased in accumulation. The price of BTC hit over $22,000, the first time in four months.

Several important indicators show that whales have played an important role in Bitcoin [BTC] recent recovery. The king’s coin surpassed the price of $22,000 for the first time in four months. However, despite the recent substantial increase, a significant part of the offer was based on unrealized profit at press time.

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whales on the gas

Bitcoin started 2023 on a positive note, breaking through key price resistance levels to recoup previously lost ground. According to data from Santiment, whales have been instrumental in the rise of BTC, as they have significantly increased their accumulation since the advent of 2023.

As of this writing, the whales have amassed around 64,000 bitcoins, which is worth over $1 billion.

Source: Santiment

Santiment further reported that most of the accumulation of over $1 billion occurred in the past 15 days. Additionally, whales holding 1,000 to 10,000 BTC were responsible for this accumulation.

#Bitcoin has now topped $22.7,000 for the first time since August 18, 2022. The price rally came as the large group of whale-level addresses holding $1,000-$10,000 BTC collectively accumulated 64,638 ($1.46 billion) $BTC in the last 15 days. https://t.co/H6jCsZDgUR pic.twitter.com/RaN2I48ybg

— Santiment (@santimentfeed) January 20, 2023

Bitcoin price is up 34% in the last 30 days and 20% in the last seven days. At press time, Bitcoin was 68% below its all-time high of nearly $69,000, reached in November 2021. However, the latest advances suggest a strong comeback after a lackluster 2022.

BTC shoots at $22,800 on a daily timeframe

As of this writing, Bitcoin is trading above $22,800. This represented an increase in value of almost 40% since the start of the outbreak. When the volume on balance was examined, it was found to be increasing and, more importantly, moving in tandem with the price movement.

Further analysis of the chart also revealed that BTC was trying to create a support level around $20,000.

Source: commercial view

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Additionally, the coin was on a bull run according to the Relative Strength Index (RSI). The RSI reading was above 70, indicating overbought conditions; it had been there since the rise began on January 11. As whales become more active, prices may continue to rise and remain in the overbought zone.

Unrealized profit up

However, although the price of BTC continues to grow, the amount of its unrealized profit tended to increase. Data from CryptoQuant showed that when the price of BTC increases, the unrealized net profit indicator also increases. Unrealized net profit was 0.40 at the time of this writing, the highest point in more than five months.

Source: CryptoQuant

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