On-Chain Data Shows Bitcoin Whales Hold Fort Despite Recent Dips

On-chain data shows Bitcoin whales haven’t budged despite the recent dips, and are rather continuing to accumulate more.

Whales Continue To Accumulate More Bitcoin

As pointed out by a CryptoQuant post, the Bitcoin sum coin age (SCA) indicator has been going up, showing long-term holders are continuing to accumulate.

The SCA is a BTC metric that tells us about the distribution of long-term holders. It’s calculated by taking the product of the UTxO (Unspent Transaction Output) alive days and the UTxO value.

The “age” of a coin is measured in “coin days.” When a certain amount of BTC remains unspent for a day, it accumulates some fraction of a “coin day.”

One whole Bitcoin remaining unspent accumulates one coin day. Similarly, if half a coin remains unspent for a day, it picks up half (0.5) a coin day.

With the help of the indicator, it becomes possible to tell what the sentiment among long-term holders is. A dip in the metric’s value would suggest that whales have started moving their coins, while an increase would imply they are continuing their accumulation.

Now, here is a chart that highlights the trend of the SCA vs the BTC price:

The Bitcoin SCA seems to be climbing straight up | Source: CryptoQuant

As you can see in the above chart, the SCA had a minor dip late July, but since then the indicator has been going up in a straight line.

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The dip occurred when the BTC price made a peak, implying some long-term holders decided to sell their coins and take the profits.

However, these holders were in the minority as most of the whales still held fort and continued to accumulate, creating the recent straight line trend.

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Also, as the graph shows, the recent crash in BTC’s price from above $50k to as low as $43k wasn’t enough to make these whales budge from their positions. The trend shows that these investors believe the price will appreciate further, and thus they continue their accumulation.

BTC Price

At the time of writing, Bitcoin’s price floats around $47.5k, up 1% in the last 7 days. Over the past month, the crypto has accumulated 4% in gains.

The below chart shows the trend in the price of the coin over the last five days:

BTC's price seems to be moving down right now | Source: BTCUSD on TradingView

After continuing some strong upwards movement over the past few days, Bitcoin looks to be heading down now. It’s unclear if this trajectory would hold, but considering that the famous golden cross has appeared, the market may be bullish.