Bitcoin is on the verge of a significant milestone, poised to surpass 20,000 wallets holding at least 100 BTC, according to data from Santiment. This development highlights a growing number of high-net-worth individuals, funds, long-term holders, and institutions accumulating substantial Bitcoin positions. With each such wallet valued at a minimum of $6.78 million based on current prices, this trend emerges amid recent price suppressions, potentially signaling bullish undertones for traders.

Understanding the Bullish Signal in Whale Wallet Growth

The increase in wallets with 100 or more BTC during or following price declines is often interpreted as a positive indicator. Historically, this pattern has coincided with accumulation phases that precede price recoveries. For traders, this suggests that savvy investors are buying the dip, distributing Bitcoin across more large holders rather than allowing extreme consolidation among a few entities. However, the overall percentage of supply held by key stakeholders hasn't risen significantly yet, which explains the ongoing price suppression. Traders should monitor on-chain metrics closely, as this distribution could reduce volatility risks associated with concentrated ownership and foster a more stable market environment for BTC/USD and BTC/ETH pairs.

In terms of trading opportunities, this whale wallet expansion points to potential support levels around $60,000 to $65,000, where accumulation has been evident in recent months. Volume data from major exchanges shows increased buying activity during dips below $70,000, with 24-hour trading volumes often spiking to over $30 billion during these periods. On-chain analysis reveals that long-term holders are not selling off, maintaining their positions, which could act as a floor for prices. For swing traders, this might present entries for long positions if Bitcoin tests these support zones, with resistance eyed at $75,000 based on historical patterns from similar accumulation phases in 2021 and 2023.

Implications for Market Sentiment and Institutional Flows

While the growth in whale wallets indicates wealth concentration in strong hands compared to smaller retail holders, it's not a full decentralization at the grassroots level. Instead, it shows more entities achieving 'whale' status, which historically supports price recoveries. Retail traders often panic sell or take profits prematurely, allowing larger players to accumulate. This dynamic is crucial for understanding market sentiment: as whale counts rise, it could correlate with reduced selling pressure from retail, paving the way for upward momentum. Institutional flows, such as those from Bitcoin ETFs, have seen inflows exceeding $1 billion in recent weeks, further bolstering this narrative and influencing BTC spot prices.

From a broader crypto trading perspective, this trend could impact altcoins as well. For instance, Ethereum (ETH) often follows Bitcoin's lead during accumulation phases, with ETH/BTC pairs showing relative strength when whale activity increases. Traders might look at cross-market correlations, where a rise in Bitcoin whales could signal capital rotation into AI-related tokens like FET or RNDR, given the growing intersection of blockchain and artificial intelligence. Market indicators such as the RSI on daily charts for BTC are hovering around 50, indicating neutral to bullish momentum, while the MACD shows early signs of a crossover. To capitalize, day traders could focus on high-volume periods around UTC midnight, when whale transactions often peak, potentially driving short-term price surges.

Overall, this milestone underscores a maturing Bitcoin ecosystem with less extreme top-level consolidation. For long-term investors, it reinforces the hold strategy amid suppressed prices, while active traders can use tools like moving averages—such as the 50-day EMA at approximately $68,000—to gauge entry points. As the number of 100+ BTC wallets approaches 20,000, keeping an eye on transaction volumes and wallet creation rates will be key. If matched by growth in overall supply held, this could herald the next bull run, offering substantial trading opportunities across multiple pairs and timeframes.