The latest blockchain analysis shows that addresses with less than 1 bitcoin are at high levels.
Analysis by blockchain data provider Glassnode revealed that the “smaller” addresses holding 0.1 to 1 bitcoin have risen since March 2020, when markets fell.
However, the view is that the uptrend could enter its final stages, as indicated by other blockchain metrics.
The data provider defines as “Sat Stackers” wallets that have less than one bitcoin. That is, those who collect satoshi. These have increased over the last three years, having accumulated more than 1.23% of the total coin supply of this period.
These small accounts are now estimated to hold 5.2% of the total bitcoin bidding offer, which currently stands at 18.66 million coins. Glassnode sums up that the continuous accumulation of small holders demonstrates the willingness for HODL through volatility with this trend not having stopped from mid-2018 until the chaos of 2020.
By comparison, whale wallets holding more than 100 bitcoins have expanded by less than 1% in the last 12 months and have been at relative levels for the past three years. However, they retain the majority of bitcoins, i.e. 62.6% of the total offer.
This transfer of wealth could be a sign that the rising market is entering its final stages, the provider of analytical data concluded. However, the founder and CEO of Vailshire Capital Management, Dr. Jeff Ross, came to the opposite conclusion from the research:
“The incentive for long-term barriers to sales is still relatively low compared to previous uptrends in the market. This measurement suggests that the current uptrend in the market still has a long way to go, in terms of price increases.”
Bitcoin has fallen sharply in recent hours. Its third major correction in this rally seems to be evolving as the asset failed to break the $60.000 barrier last weekend.
At current prices, the BTC corrected to almost 10%, which is nowhere in the levels of previous corrections, which reduced prices by 31% and 26% from their respective highs.
A similar downturn from the recent high of $60.100 would put prices in the $42.000 range.
The $54.000 support seems to be on the verge of breaking, so the next level to look out for is around $51.200.