Retail investors increase Bitcoin accumulation by 72% amid intense whale selling

This week's trading has proven to be quite chaotic for Bitcoin as the leading cryptocurrency dropped to as low as $91,000 on Monday amidst concerns over a potential trade war between the United States and Canada, Mexico, and China. Although Bitcoin quickly rebounded, surging above $102,000 in a short period of time, the leading cryptocurrency is currently trading around $96,000 in what appears to be a volatile market. Meanwhile, blockchain analytics firm Glassnode has provided valuable insights into the behavior of Bitcoin investors over the past few months. Retail investors accumulate 10,627 BTC per day In X's recent post, Glassnode delves into the recent activities of Bitcoin hodlers, stating that retail investors, i.e., addresses holding ≤1 BTC, are currently in a prolonged accumulation frenzy until mid-December. Notably, these small investors are purchasing Bitcoin at an accelerated average rate of 10,627 BTC per day, a 72% increase compared to last year's daily average of 6,177 BTC. This strong buying by retail investors marks a clear contrast to their behavior in November when they chose to take profits as Bitcoin surged above $100,000. However, their accumulation despite Bitcoin's challenges since December shows strong confidence in the long-term profit potential of this asset.

On the other hand, Bitcoin whales, which refer to investors holding more than 1000 BTC, are liquidating their assets at an unprecedented rate. Since November 24th, these major investors have been transferring Bitcoin to exchanges at an alarming average rate of 32,509 per day, indicating a potential selling pressure that is 9 times higher than the average annual BTC level. In general, a large market whale sell-off is a bearish signal indicating uncertainty about the future price of an asset. However, the Bitcoin community remains optimistic as a significant portion of the market whale sell-off may be profit-taking rather than loss of confidence. Furthermore, the recent accumulation wave of retail investors has played a role in absorbing the main supply source, reducing the possibility of a sharp price drop. Although Bitcoin is struggling to find stability, retail investors must maintain their current demand, which is crucial in maintaining the asset's price structure. Overview of BTC price At the time of the press release, Bitcoin was trading at $96,679 after a 0.84% decrease in the past day. This negative performance highlights the asset's form over the past week, with prices down 5.71%. Despite the price drop, trading volume surged by 17.22%, signaling increased market activity and interest. Bitcoin's price action indicates consolidation within the $95,000 - $100,000 range, setting the stage for a potential breakout. To confirm the upward trend, market speculators need to push for a price increase above the key resistance level of $105,000.