Key Points
- A dormant whale has purchased 250 BTC, indicating a renewed institutional confidence in Bitcoin.
- Bitcoin needs to maintain its momentum to surpass $107K, or it could potentially drop to $101,436 if support fails.
Bitcoin [BTC] seems to have shifted into accumulation mode once again. This is driven by a reactivated whale, increasing exchange outflows, and enduring buying pressure, all contributing to a bullish sentiment.
Whale Activity and Exchange Outflows
While Bitcoin’s price action remains within a certain range, underlying on-chain indicators suggest that BTC may be preparing for a move if momentum persists. As per Lookonchain, a whale that has been dormant for two years has purchased 250 BTC valued at $26.3 million. This same whale had withdrawn 500 bitcoins, equivalent to $13.7 million, from Gemini two years prior and is now sitting on an unrealized profit of $39 million.
The awakening of this whale after years of inactivity suggests a growing confidence in Bitcoin’s future. This is significant as it mirrors the overall market behavior with most investors accumulating BTC once more.
When observing the behavior of whales in general, it’s evident that this group is actively accumulating. According to IntoTheBlock, the Netflow Ratio of Large Holders has fallen into the negative zone, reaching -0.05. This means that whales are not depositing coins on exchanges to sell, but rather, they are withdrawing them — a strong sign of conviction.
Exchange Balance Data and Market Demand
This behavior aligns with broader Exchange Balance data. CoinGlass data reveals that over the past week, approximately 67,854.33 Bitcoins have been withdrawn from centralized exchanges. Specifically, 25,368.42 BTC has flowed out of Bitfinex, 10,291.95 BTC from Binance, and 9,867.35 BTC from Coinbase in the past seven days. This indicates a high demand for the cryptocurrency.
The Taker Buy Sell Ratio has remained positive for two consecutive days, suggesting that buyers are dominating the market. So much so that buyers have acquired 8.68k BTC over the past two days, resulting in a positive market delta.
Bitcoin’s Future: Momentum or Correction?
According to analysis, buying momentum for Bitcoin is reemerging. Despite struggles on its price charts, whales and retail investors remain optimistic about the market. Historically, a high demand for Bitcoin has often led to higher prices. For instance, when BTC rallied to the recent all-time high, buyers accumulated 65.9k BTC within 48 hours.
If this momentum continues, BTC could potentially break above the $107K resistance and retest the $109K zone — a level that has previously rejected buyers twice. However, if buying pressure subsides, the vacuum could be quickly filled by sellers, which could result in BTC dropping below the $104K support and potentially falling as low as $101,436.
