Large institutional investors, known as whales, and early cryptocurrency holders have begun buying Bitcoin (BTC) again for the first time since August of this year.
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Bitcoin whales had been net sellers since August when the price hit successive all-time highs, peaking above $126,000 in early October of this year. However, the pendulum is now swinging back in Bitcoin’s favor as large investors wade back into the crypto market.
Following the recent 35% drawdown from the October highs, Bitcoin appears to have bottomed around $84,000. In recent days, the trend has flipped from distribution to accumulation, pushing the price of BTC to $91,500. Analysts say they’re encouraged to see the price above the key level of $90,000.
Flipping the Script on Bitcoin
According to Glassnode’s Accumulation Trend Score, entities holding 10,000 Bitcoin or more are now net accumulators of the crypto amid strong buying activity. The 1,000 to 10,000 BTC holders have also turned bullish and begun buying again for the first time since September.
Glassnode says the data suggests that the market has identified value in Bitcoin below the $85,000 price level. Importantly, Bitcoin regained $90,000 quickly after heading towards $80,000 in late November. Investors appear to view $85,000 as the fair value of BTC.
Is Bitcoin a Buy?
Most analysts don’t offer ratings or price targets on Bitcoin. So instead, we’ll look at the three-month performance of BTC. As one can see in the chart below, the price of Bitcoin has fallen 22.31% in the last 12 weeks.
