Key Points
- Bitcoin whales have reversed their selling trend, indicating a potential shift in market sentiment.
- If the accumulation continues, Bitcoin could challenge the $90,000 mark again.
Bitcoin [BTC] whales have been reducing their holdings for over a month, marking a significant period of net decline over the past year. But, a shift in this trend has been observed recently, with whales starting to accumulate again.
This change has pushed the monthly percentage change in whale holdings back into positive territory. This could be an indication of potential changes in market sentiment. The key question now is whether this shift could fuel BTC’s next rally or if the accumulation is merely a temporary adjustment.
Bitcoin’s whale accumulation resumes – A trend reversal?
According to recent on-chain data, Bitcoin whales have now re-entered accumulation mode. After weeks of declining balances, total whale holdings are now seeing an uptick, with the 30-day percentage change turning positive at +0.7%.
Historically, similar shifts in whale behavior have often preceded significant price movements. At the time of writing, the total balance was around 3.4 million.
Past trends reveal that whenever whales reversed from net selling to net accumulation, BTC saw periods of heightened volatility. In many cases, these periods were followed by price recoveries. This suggests that whales may be positioning themselves for a potential market shift.
Bitcoin’s price action – What’s next?
At the time of writing, Bitcoin was trading at $86,480. The 50-day moving average sat at $92,321, acting as a key resistance level.
Meanwhile, BTC seemed to be hovering near the lower Bollinger Band, indicating that price volatility has been increasing across the board.
The Money Flow Index [MFI] was at 49.06, suggesting that BTC was neither in overbought nor oversold territory.
A sustained increase in whale accumulation could drive Bitcoin towards a retest of $90,000. However, failure to reclaim key moving averages could push the price towards its $82,000 support levels.
What could happen next?
Previous instances where whale accumulation resumed after a period of net selling have often resulted in increased buying pressure in the following weeks.
However, the extent of the price impact depends on external market conditions, such as macroeconomic factors and overall investor sentiment.
A significant factor to consider is whether the whale accumulation is coming from long-term investors or short-term traders. If the recent buying trend continues, it could signal renewed confidence in BTC’s long-term outlook. Conversely, if accumulation slows down, BTC may remain range-bound before making its next decisive move.
Will whales drive the next Bitcoin rally?
The recent shift in Bitcoin whale behavior suggests that large holders are starting to position themselves for a potential market shift. While previous accumulation phases have led to price hikes, it is crucial to monitor BTC’s ability to reclaim key resistance levels.
If whales continue to buy aggressively, BTC could attempt to break above $90,000 and retest $92,000. On the other hand, failure to maintain accumulation momentum may keep BTC from consolidating between $82,000 and $88,000 in the near term.
Investors should keep an eye on on-chain data and macroeconomic signals to gauge whether this whale-driven momentum can be sustainable or not.