NewsBTC recently reported a surge in Bitcoin purchases by large investors, often known as “whales.” These whales are reportedly snapping up Bitcoin at a rate three times the daily amount produced by miners. This rapid accumulation could potentially set the stage for a significant increase in Bitcoin’s price.
Data from Glassnode reveals that investors who hold between 100 and 1,000 Bitcoins are aggressively amassing more. These large-scale holders are currently absorbing over 300% of Bitcoin’s annual supply emission.
Simultaneously, Bitcoin outflows from major cryptocurrency exchanges are steadily increasing. This trend suggests that more whales are opting to store their assets long-term rather than keeping them readily available for trading. Market analysts interpret this behavior as a sign of growing confidence in Bitcoin’s long-term value.
Interestingly, these whales continue to buy when prices dip, using such downturns as opportunities to grow their assets rather than divesting. Onchain analysts have likened this behavior to trends seen during Bitcoin’s bull cycle in 2020.
Currently, Bitcoin is testing its 50-day and 200-day exponential moving averages as resistance points. Analysts estimate these levels to be around $85,500. If Bitcoin fails to overcome these technical hurdles, the price could pull back, with the next critical support lying around $80,000.
A period of low volatility, coupled with significant buying pressure, seems to indicate behind-the-scenes accumulation in anticipation of a significant price move. This pattern follows the typical trend of previous bull markets, suggesting that prices could rebound and continue to climb.
Bitcoin’s price has been correcting for almost three months, falling nearly 30% from its peak near $100,000 earlier this year. However, this drop aligns with typical mid-cycle corrections of 25-35% before prices surge again.
