On-chain analytics firm Santiment has revealed how Bitcoin is currently in a bullish zone based on the behavior of whale and retail investors.
Bitcoin Major & Retail Entities Have Shown Opposite Trajectories RecentlyAccording to the analytics firm, whale and retail behavior diverging in this manner puts the market in what it defines as the “Very Bullish” zone. “This is the ideal setup for a bull run,” noted Santiment.
In the chart, the analytics firm has also highlighted four other zones for BTC based on the trajectories followed by the whale and retail supplies. “Very Bearish” (colored in red) follows the same contrarian logic as the Very Bullish region, with the zone appearing when large entities are selling, and retail is accumulating. Bearish (orange), Neutral (yellow), and Bullish (blue) map out the spectrum between the two extreme regions.
Bitcoin’s latest venture into the green Very Bullish zone has come as sharks and whales have loaded up on 32,693 BTC (worth about $3.1 billion) since January 10th, corresponding to a supply increase of 0.24%. Retail investors have sold 149 BTC ($14.4 million) in this window instead, equivalent to a drop of 0.30%.
It now remains to be seen whether BTC will stay in this region for long or if another shift in investor behavior will take place. “How long it lasts depends on how long retail doubts the mini rally that has formed,” explains Santiment.
BTC PriceBitcoin witnessed a break beyond the $97,000 level on Wednesday, but the bullish momentum has since cooled, with the BTC price returning to the $96,900 mark.
