Bitcoin Enters ‘Very Bullish’ Zone as Large Holders Stack BTC

Bitcoin (BTC) climbed to a high of $97,800 on Wednesday even as global geopolitical tensions remained high, pushing its weekly gains to nearly 8%.

Interestingly, on-chain data showed large holders increasing accumulation while smaller retail wallets reduced exposure.

Whales Are Back

According to the latest analysis shared by Santiment, whale and shark wallets holding between 10 and 10,000 BTC have collectively accumulated a net 32,693 Bitcoin since January 10. In the process, these players have raised their combined holdings by 0.24%. This level of accumulation is the highest seen in approximately two months, based on its findings.

However, the same cannot be said for shrimp wallets that hold less than 0.01 BTC. This cohort has collectively sold 149 BTC over the same period, which resulted in a 0.30% decline in their aggregate balances. Hence, there is significant divergence in behavior as accumulation remains concentrated among higher-balance wallets while micro holders reduce positions. This pattern has continued through recent trading sessions and coincided with BTC’s advance toward the recent uptick.

Santiment said that this is the ideal setup for a bull run. The analytics firm also added that how long it lasts depends on how long retail traders continue to doubt the emerging mini rally.

Additionally, social media data shows that sentiment toward Bitcoin has turned increasingly bearish this week despite a price rebound. In fact, negative commentary has reached its highest level in 10 days. Such a change historically is in line with upward price movement, as markets often move against retail sentiment. Hence, the rise in fear, uncertainty, and doubt (FUD) has raised the possibility of the crypto asset revisiting the $100,000 level for the first time since November 13.

BTC Derivatives Flip Bullish

On the derivatives side of things, BTC futures have moved into a bullish, risk-on phase for the first time in three months, according to analyst Axel Adler Jr.

The Bitcoin Positioning Index climbed to 3.5 this week, which is its first break above the key 3 level since October. The index, which tracks open interest, funding rates, and long-short activity, indicates that bullish positions are building steadily rather than spiking suddenly.

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