Large-scale Bitcoin Buyings: Impact on Bitcoin's Value as Whales Acquire 20,000 BTC in Two Days
Increased Whale Activity and Drying Exchange Outflows Suggest a Potential Bitcoin Price Rally
In the past two days, a substantial inflow of more than 20,000 Bitcoin (BTC) has been accumulated by large investors, according to data revealed by renowned analyst Ali Martinez. These investors now hold approximately 4.7 million BTC, accounting for roughly 23.7% of the circulating supply, signaling a bullish outlook for the cryptocurrency market.
Martinez's chart indicates that such accumulation by whales, or large holders with 1,000 BTC or more, is generally considered a positive sign for the asset's price, potentially triggering a price rally. This intensified buying interest may instill confidence in smaller investors, leading them to join the buying frenzy.
There are other factors suggesting that the BTC price may soon head north. Over the last month, the supply of the asset on exchanges has dwindled, with 30,000 BTC being moved off centralized platforms. Additionally, in only seven out of the last 30 days have exchange netflows been positive, suggesting a shift towards self-custody solutions, which reduces immediate selling pressure.
The Bitcoin Relative Strength Index (RSI), a momentum oscillator, is also worth noting. The RSI, which measures the speed and magnitude of recent price changes, is currently at a level just above 30, typically indicating that the asset may be oversold and poised for a resurgence.
While this accumulation trend suggests a bullish scenario, recent activity shows that whales have begun sending Bitcoin back to exchanges on some days, an action commonly linked to potential selling or profit-taking near market peaks[1]. Additionally, the accumulation trend score, a metric evaluating buying versus selling activity, has seen a decrease for the largest holders[1].
Analysts note that while whale-driven demand is bullish, the market might be approaching an overheating phase with profit-taking risks that could result in short-term corrections or consolidation before any sustained rally[5].
Traders should monitor whale wallet activity and exchange flows closely for clearer directional cues. The trends of increased BTC accumulation by whales and decreased exchange outflows may signal a bullish period ahead, but the current mixed signals suggest that the market could also be approaching a local peak or period of consolidation before a definitive rally resumes[1][2][5].
[References: 1,2,3,4,5] (Not for publication)
Large holders, often referred to as whales, are actively investing in Bitcoin, amassing a significant portion of the cryptocurrency's circulating supply. This increased crypto financing by whales, accompanied by a decrease in Bitcoin held on exchanges, suggests a potential bullish run for Bitcoin prices.
