Bitcoin eyes return to ATH, but are you holding it back?

• BTC has stayed above $66,000.
• Small BTC wallets have dumped more coins in the past week.

Bitcoin [BTC] is trading above $66,000 and is attempting to climb back to its recent all-time high. Despite this rebound effort, small wallets have been selling off their holdings.

However, the overall accumulation of BTC has continued, suggesting that larger investors or institutions are still buying despite the sell-offs from smaller wallets.

Small Bitcoin wallets dump holdings

According to new data from Santiment, small Bitcoin wallets have been selling off their holdings in the past few weeks.

Analysis of the total number of holders showed that over 182,000 holders sold their holdings in the past week.

The chart indicated that wallets with under 0.1 BTC have reduced their holdings by 0.46% in the past week. This decline might be due to small wallets attempting to make quick profits.

Source: Santiment

However, despite this decline, the pattern of small wallets selling and large wallets accumulating is typically considered a bullish sign.

Analysis of wallets holding 1,000 or more BTC showed that the volume held by these wallets has increased recently. At the time of this writing, the total number of Bitcoin holders was around 53.8 million.

Bitcoin continues to see negative netflow

Analysis of Bitcoin’s exchange netflow revealed that it recently experienced its highest negative volume.

On 15th May, the netflow was -22,359 BTC, the highest since December 2023. The chart indicated that netflow has remained negative since then, meaning more BTC is being withdrawn from exchanges than deposited.

This suggests that despite the sell-off from small BTC wallets, there is significant ongoing accumulation.

Source: CryptoQuant

This trend is typically a bullish signal, indicating confidence among larger holders and reducing the available supply on exchanges. Consequently, the price trend could benefit from this increased accumulation.

BTC struggles to stay above $66,000

A look at Bitcoin on a daily time frame showed that it has recently entered the $66,000 price zone and has been struggling to maintain it.

According to AMBCrypto’s analysis, Bitcoin was trading at around $66,700, which is an approximate 0.7% increase at the time of this writing. 

Source: TradingView

Read Bitcoin (BTC) Price Prediction 2024-25

The chart indicated that Bitcoin recently flipped its short moving average (yellow line), which had previously acted as resistance, into support.

The immediate support level was around $64,000 at the time of this writing.