Bitcoin’s market is on the verge of breaking below a key support level as the market turned on its head in the last few hours. While the market movements seem to be related to the “failed” halvings by the top chain’s forks (Bitcoin Cash and Bitcoin SV), BTC’s upcoming halving in a month is expected to boost positivity across the market.
Bitcoin’s fundamentals remain solid as a path to a successful halving is set on the horizon despite the current dip in price back below the key support at $7,000. The growth in the number of HODLers shows interest and value placed in the asset heading to the halving. As we set into the accumulation period, will bulls survive the halving or will a similar BCH/BSV scenario pun out?
Bitcoin whales at the highest growth rate since 2016
According to Glassnode’s latest weekly report on the state of the market, the number of Bitcoin whales is on a spike reaching a level not experienced since pre-halving levels in 2016. The number of BTC whales (those wallets holding at least 1000 BTC) is currently at a level last experienced in early 2018 following the massive bull run in 2017 – in a capitulation phase.
The current rise in the number of whale account is easily comparable however to the 2016 rum when this level was reached in an accumulation phase before a halving – similar to the current state of Bitcoin’s ecosystem.
Accumulation phase, bullish signals?
During the 2016’s accumulation phase, the price of Bitcoin rose steadily to its all-time high in a year or so. Looking at the chart above, bitcoin whales are in an accumulation phase since January last year with a break in the rapid accumulation phase coming in July 2019 during the sharp rise in BTC’s price to $15,000.
Since then, the accumulation amongst whales has been steadily growing reaching the key level. With the BTC supply rate expected to half come mid-May, BTC whales are expected to keep buying in preparedness for this event. Could this signal a start of a mega bullish run in the closing months of the year as we saw in 2016-2017?