Ecoinometrics, an on-chain monitoring resource, has said that the Bitcoin price against the US Dollar (BTC/USD) will start going upwards only if hodlers continue to accumulate bitcoins.
In its analysis, the research report analyzed the investors and traders who bought the leading crypto coins from October 2020 (the time when the latest bull run started). In comparison to last year, Ecoinometrics has found that there is a major change in behavior. The research showed that at the start of the bull run, it was the smaller investors who started accumulating. This trend started when BTC/USD pair surpassed its previous high of near-US$20,000 level and kept rising to the new ATH at US$64,863.10.
The research report of Ecoinometrics also pointed out that the larger investors started to sell, albeit not in sufficient quantities, to end the bull run when the price was hovering around the US$20,000 level. The Bitcoin whale accounts increased the selling pressure when the BTC price reached the US$30,000 level for the first time. Ecoinometrics commented in its research report that:
“Apparently $30k is a key level that stopped the trend of coins accumulation by whales.”
One of the main reasons why the selling pressure of the whales prevailed around the US$30,000 level because they were worried that the BTC price was moving too fast and it was gaining “too much, too soon”, making the market unsustainable.
The US$30,000 level has again returned, making both big and small investors to buy again. The report says:
“Whales and small fish have started accumulating again while other categories have turned neutral.”
It continued saying:
“If that interpretation is correct, then what we had with this correction is a reset. Would that trend of accumulation continue, there is only one direction Bitcoin can go and that’s up.”
This research report of Ecoinometrics provides a hope to the investors, especially at a time when the BTC/USD price has moved below the US$32,000 level and the volumes have reached a low.
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