[Analysis] "Whale accumulation and retail profit-taking intersect…Bitcoin likely to see further upside"

Analysis suggests that in the Bitcoin market, large holders' accumulation and retail investors' profit-taking have appeared simultaneously, increasing the likelihood of additional upward momentum.

On the 6th (local time), on-chain analytics firm Santiment said via X, "Recently, accumulation by large holders known as whales and sharks and profit-taking by retail investors have appeared simultaneously. The market traditionally follows the movements of large holders and tends to move in the opposite direction of the expectations of small retail investors."

According to Santiment, whales and sharks refer to addresses holding 10 to 10,000 Bitcoin (BTC), and retail investors are defined as wallets holding less than 0.01 BTC. Since mid-December last year, these whale and shark cohorts have accumulated a total of 56,227 BTC.

Santiment said, "This point corresponds to a local bottom for Bitcoin," adding, "Although the market price remained relatively sideways thereafter, the bullish divergence shown by whales' accumulation was structurally bound to produce at least a minimal breakout move."

Over the past 24 hours, there was also an assessment that market conditions have further improved. This is because retail investors judged that this rise might be a temporary rebound rather than the start of a full bull market, and thus are taking profits in advance. Analysis indicates that when retail investors take a cautious stance like this, the market often instead moves higher.

Santiment concluded, synthesizing this supply-demand structure, "There is a higher-than-usual probability that the total market capitalization of the cryptoasset market will continue to expand."