Bitcoin (BTC) is down 30% from its $126,200 peak and is trading just above the $85,000 support, raising concerns of a deeper decline towards the $70,000 region. Still, on-chain data showed that institutions and high net price individuals were accumulating BTC.
Key insights:
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Bitcoin sharks have been aggressively accumulating at rates much like 2012 levels, indicating a downward buying trend.
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Heavy selling by long-term and OG whales continued to limit upside potential, keeping near-term downside risks elevated.
BTC/USDT each day chart. Source: TradingView
Mid-sized Bitcoin traders add 54,000 BTC in every week
According to Glassnode, Bitcoin “sharks,” entities holding between 100 and 1,000 BTC, have increased their total holdings from 3.521 million BTC to about 3.575 million BTC prior to now seven days, absorbing 54,000 BTC from smaller holders.
BTC shark net position change. Source: Glassnode
This move marked the fastest pace of shark accumulation since 2012, suggesting strong bullish belief amongst high net price individuals and institutional players despite BTC's 30% decline.
In 2012, an analogous surge in Bitcoin accumulation preceded one in every of its earliest major rallies, with BTC climbing from around $10 to over $100 in a 12 months, a 900% increase.
BTC shark net position change. Source: Glassnode
An identical pattern emerged in 2011, when Bitcoin's 350% surge from under $3 to over $14 was followed by aggressive accumulation by middle-class holders.
A repeat of this historic fractal would encourage further uptrend.
Bitcoin is under selling pressure from long-term holders
Whales with holdings of greater than 10,000 BTC have emerged because the major driver of the sell-off over the past two months, showing that sharks' purchasing power has been insufficient.
The BTC supply is held by firms with a balance of over 10,000 tokens. Source: Glassnode
This imbalance is consistent with Capriole Investments' assessment that record institutional buying has been offset by an equally historic long-term distribution of holders.
Founder Charles Edwards wrote in a Tuesday post:
“While institutional buying on Coinbase has reached unprecedented levels (Z-Score 15.7), it’s being absorbed by “OG” whales and long-term holders who’re selling at rates not seen in years (Hodler growth rate at 0.sixth percentile).” 
BTC/USD each day chart. Source: TradingView/Charles Edwards
The price increase could possibly be limited until the heavy distribution of older coins subsides, he added.
Reinforcing the bearish outlook, veteran trader Peter Brandt highlighted Bitcoin's recent collapse below its parabolic support, a move that has historically resulted in a price decline of around 80%. In other words, BTC price could fall as little as $25,000 if the fractal repeats.
BTC/USD weekly chart. Source: TradingView/Peter Brandt
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This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision. While we try to offer accurate and up-to-date information, Cointelegraph doesn’t guarantee the accuracy, completeness or reliability of the knowledge in this text. This article may contain forward-looking statements which might be subject to risks and uncertainties. Cointelegraph won’t be responsible for any loss or damage arising out of your reliance on this information.
