One major player in the cryptocurrency market just withdrew 1,000 BTC ($8.3M) from Bitstamp to an external wallet. Is this a sign that Bitcoin is in a period of accumulation?
The leading cryptocurrency has been holding steady around the $8,300 price point and seems to have proven wrong many of the bears who have been calling for a further breakdown below the $8,000 price level. Instead, Bitcoin has remained relatively stable and volatility is oddly low.
Given the stability in Bitcoin’s price, some whales are taking notice — which seems to be a clear sign that we are in an accumulation period.
One individual earlier today moved 1,000 BTC (worth around $8.3M) from Bitstamp to an external wallet. The transaction was recorded by Whale Alert (@whale_alert).
— Whale Alert (@whale_alert) October 13, 2019
The 1,000 BTC was sent to a completely new address. This means that it was made specifically to accumulate this BTC. As one user on Twitter writes, this whale is simply moving their BTC to a ‘HODL wallet.’
Transfer to #HODL wallet
— Maradello [ŁTC] (@vermi_shell) October 13, 2019
Bitcoin has proven itself resilient at this price level and fears of a breakdown are receding. Panic was high when Bitcoin posted double-digit losses two weeks ago just one day after the release of Bakkt. There were expectations of a further price collapse, but this has not happened yet. Instead, we now have a period for traders to breathe. Bitcoin has remained stable and many major altcoins have been bouncing off support levels.
Bitcoin’s stability is good news for the entire cryptocurrency market. It’s an accumulation period, and a time for other cryptocurrencies to ‘catch up’ to Bitcoin. It remains to be seen how long this stable period will last before Bitcoin decides it’s time for another leg up.
Do you believe we are currently in a short-term accumulation period for Bitcoin? Let us know your thoughts below in the comments.
Images courtesy of Shutterstock, Twitter.