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‘Prawns’ and ‘Crabs’ Increasing Their Assets During the Bitcoin Decline

  • Bitcoin, the world’s largest cryptocurrency in terms of market value, has continued to trade slowly since mid-April and fell below $26,000 as a result of regulatory fears last week.
  • Starting from Monday, BTC showed unexpected resistance and investors temporarily put aside their concerns about the lawsuits filed by the SEC against Binance and Coinbase, focusing their attention on the upcoming Federal Reserve interest rate decision.
  • Santiment stated that despite the falling price, Bitcoin has a bullish tendency in accumulation formations.

Data shows that while the price of Bitcoin is falling, Crabs and Shrimps are accumulating BTC. Meanwhile, large whales are buying more BTC.

While Bitcoin Falls, Investors Accumulate

Bitcoin (BTC)

Bitcoin, the world’s largest cryptocurrency in terms of market value, has continued to trade slowly since mid-April and fell below $26,000 as a result of regulatory fears last week.

However, starting from Monday, BTC showed unexpected resistance and investors temporarily put aside their concerns about the lawsuits filed by the SEC against Binance and Coinbase, focusing their attention on the upcoming Federal Reserve interest rate decision.

Particularly since last year’s decline, the decline of Bitcoin has sparked curiosity, encouraging many investors to take advantage of this opportunity and buy the dip. On Tuesday, blockchain analytics firm Glassnode reported that Bitcoin Crabs and Shrimps have accumulated nearly 1 million BTC since the collapse of the cryptocurrency LUNA in May 2022. Shrimps represent assets holding less than 10 BTC, while Crabs represent assets holding less than 1 BTC.

According to Glassnode, “Following the collapse of LUNA, it has been observed that Bitcoin assets (Crabs – Shrimps) holding less than 10 BTC have increased their share from 13.72% to 17.54% of the circulating supply, indicating an increase of 3.82%, equivalent to +790K BTC.”

bitcoin entities supply distribution

Bitcoin Supply Distribution

Large Whales Buying More BTC

This is not the only group buying the dip. Another firm, Santiment, stated that despite the falling price, Bitcoin has a bullish tendency in accumulation formations. While the altcoin market is going crazy, Santiment highlighted a divergence between Bitcoin’s accumulating whales and the falling price.

The firm stated that Bitcoin ownership by whales has increased by approximately 1,000 BTC daily, indicating that larger investors are accumulating more Bitcoin as prices fall.

The firm stated, “With whale holdings increasing by approximately 1,000 BTC daily as prices fall, there is reason to believe in the potential for a strong recovery.”

Other Bitcoin metrics also seem to be improving. According to Glassnode data, Bitcoin’s short-term holders have experienced a significant profit-focused period since the beginning of this year. However, as Bitcoin’s spot price continues to fall, the Realized Profit/Loss Ratio for STH (Short-Term Holders) is now approaching a critical decision point and indicating a balanced position.

bitcoin short term holder realized profit loss ratio

Short-Term Bitcoin Holders’ Realized Profit/Loss Ratio

Glassnode stated that a bounce from the equilibrium point would be considered a “good sign” and supportive for Bitcoin. On the other hand, a clear drop below the equilibrium point indicates market weakness and the possibility of further price decline. The market is evaluating Bitcoin’s future trajectory by waiting for such a critical moment.

At the time of writing, BTC was trading at $25,033 with a 3.4% decrease in the past 24 hours. The current price range of Bitcoin is considered a strong support level. Additionally, the presence of a bull flag formation and a reverse head and shoulders formation indicates the possibility of an upcoming bull rally.

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Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
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