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Bitcoin (BTC) Price Dilemma: Large Holders Accumulate, $23k Looms

2 mins
Updated by Ryan Boltman
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In Brief

  • On-chain data shows that Bitcoin's price risk falling to $23,000 because it lacks strong support below the $25,400 mark.
  • Large BTC holders added more than $1.5 billion worth of the asset within the last two weeks.
  • Market observers have suggested that BTC's price could breakout if the U.S. SEC were to approve one of the many spot ETF applications before it.
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Bitcoin price is at risk of falling to $23,000, but that appears not to bother large holders of the flagship digital asset who have been accumulating BTC at a very high rate. 

Ali Martinez, BeInCrypto’s Global Head of News, citing on-chain data from Glassnode, noted that BTC lacks strong support below the $25,400 mark. He said the market could see a swift correction to around $23,000 if the price fell below the threshold.

ETF Influencing Bitcoin Price Action

Given that the asset is currently trading at $25,841, according to BeInCrypto data, the risk of breaking that support level is real. The extreme volatility of recent weeks further complicates matters.

Over the past month, BTC has witnessed a decline of 11.4%. In the last five days, the premier cryptocurrency oscillated from $25,000 to $28,000 and then back to $25,000.

BTC Price Action
BTC Price Action. Source: BeInCrypto

This price turbulence can be largely attributed to developments related to spot Bitcoin ETFs. The announcement of Grayscale’s legal success led to a surge in BTC value, but optimism waned as the SEC postponed its decision on the pending ETF applications before it.

Market observers assert that the asset currently teeters on a precarious edge, with the dominance of either bullish or bearish sentiments poised to dictate its future trajectory. Blockchain analytical firm IntoTheBlock said:

“Bearish sentiment may trigger a rush to break even, adding to sell volume. However, If there is enough strong bullish momentum, for example, because of an ETF approval, Bitcoin could breeze through these roadblocks.”

Long-Term Holders Unbothered

Meanwhile, data from IntoTheBlock shows that addresses holding 0.1% of BTC supply or more added more than $1.5 billion worth of the asset within the last two weeks.

Bitcoin Holders
Bitcoin Large Holders. Source: IntoTheBlock

Large Bitcoin holders’ addresses, a key metric, have shown intriguing trends in the past month. The net flow has steadily increased after experiencing a decline in early August, hitting a low point on August 22. Notably, a significant surge in net flow was observed between August 28 and 29.

This period coincided with the SEC’s postponement of its decision regarding spot Bitcoin ETF applications, a time when the flagship cryptocurrency exhibited signs of exceptional volatility.

Additionally, Glassnode data shows that the supply of long-term holders is now very close to 15 million. By comparison, short-term holders currently hold around 2 million of the supply.

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Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.
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