The number of Bitcoin whales has surpassed a three-year high, over 1,800.

Such a rise in the number of whales - individual investors holding a large amount of Bitcoin – over the past three months is considered by many to be bullish.

When the number of Bitcoin held by so-called whales rises, it may increase the level of concentration of supply of the world’s largest cryptocurrency by market cap to fewer investors, reports Cointelegraph.

However, when the amount stays the same and there are more whales, this is a sign there are more people holding a large amount of Bitcoin.

The increase in the number of whales may signify a medium to long-term Bitcoin price trend, as these investors opt to hold onto Bitcoin in anticipation of a bull run.

Liesl Eichholz from Glassnode commented: “Where did all these new whales come from? Much of the recent increase can be attributed to wealthy entities withdrawing their BTC from exchanges. Apparently, this is not new wealth - rather, it represents a change in the way Bitcoin whales are choosing to hold their coins.”

In mid-March, Bitcoin’s price fell to $4,000. Eicholz indicated whales may have bought the dip in March, and are now focusing on a long-term strategy. A Glassnode report added: “Whales may have used Black Thursday as an opportunity to get in at the bottom and then withdraw their bitcoin to HODL for the longer term in anticipation of the next bull run.”

Towards the end of March, there was a considerable spike in Bitcoin outflows from crypto exchanges. This corresponded to the increase in whale numbers, suggesting HNW investors aggressively bought into Q1’s 60% fall. 

Over the medium-term, if whales opt not to sell or trade Bitcoin at present price levels, this could result in an uptrend, along with a fall in selling pressure.