The third-biggest Bitcoin whale in the world has entered accumulation mode with huge purchases of BTC over the last week as the leading crypto by market cap hovers around the $40,000 mark.
The whale is ranked number three but is the largest non-exchange entity and has accumulated 2,822 BTC in the past seven days, according to BitInfoCharts.
The new addition of BTC to the whale’s wallet is currently worth $117,144,042 and puts the value of their wallet at $5,202,214,689.
Closely followed crypto analyst Benjamin Cowen points out that the whale, unlike many of the top entities, stays fairly active rather than simply buying and holding.
He says that the whale appears to have been trading a range within Bitcoin’s price action, buying dips and selling local highs.
“You can see they’ve been periodically adding to their stack here in the low $40,000s and upper $30,000s levels. Now the reason this is interesting is because it wasn’t that long ago when they were taking some off the table…
We need to understand that some people like to swing trade the market. Some people trade the ranges, and when it gets to the top of the range they sell and when it goes to the bottom of the range they buy…
If we go all away back – to just give a little more history – you go back to November and you can see in fact they took 1,500 Bitcoin off the table at $67,000.”
In contrast to the whale’s relatively active trading strategy, Cowen notes that the majority of the richest Bitcoin wallets tend to buy only on occasion, usually after large corrections. He says that a resurgence of the most long-term strategy whales could eventually end up being a major buy-signal for Bitcoin.
“The reason why I keep watching these wallets is, man it’d be nice to see them buying again. If we’re sitting here and Bitcoin is trading at some price in the future and we’re all feeling somewhat depressed about it and we see these wallets adding again, boy that’d be interesting. We’ll be like, ‘well they got $3,800 Bitocin, the bottom was at $3,100, then they picked it up at $31,000 when the bottom was at $29,000, so maybe they’ll do a good job again in the future.'”
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Featured Image: Shutterstock/Hoika Mikhail
