Bitcoin whales—which are wallets that have more than 10,000 BTC—are reportedly in their largest accumulation mode. They’re consuming more than 3x the current annual Bitcoin supply! Read on to find out why this behavior, along with other market indicators, point to a potential bullish reversal for the cryptocurrency. The trend is reminiscent of a similar pattern seen leading into Bitcoin’s historic bull run in 2020.
Whale Activity and Market Trends
Bitcoin whales are still showing excellent accumulation, with a Trend Accumulation Score of about 0.7 on April 18. This would mean a more than 20x increase in their Bitcoin allocations. Additionally, Bitcoin whales and sharks have been accumulating BTC at 300%-plus of the annual issuance. This absorption rate further underscores the predatory hoarding of these whale wallets.
Downshifting Accumulation Smaller segments of Bitcoin holders are now accumulating Bitcoins more slowly. Both the 10–100 BTC and 1-100 BTC groups are nearly back up to a neutral zone at ~0.5. This burgeoning movement indicates a real possibility of changing their current investment policies towards something more transformative. The sell-off in the smaller cohorts, which had characterized this year thus far, has come to a halt. This continued trend indicates that the market could be starting to stabilize.
Exchange Dynamics and Technical Indicators
As we previously discussed, exchanges are now losing coins at an unprecedented rate, with the annual absorption rate dropping well below -200%. This outflow from exchanges, combined with other on-chain metrics, lends credence to the narrative of aggressive accumulation and lessened selling pressure.
BTC shows clearyyy bullish momentum BTC has recently broken up and above a multimonth falling wedge pattern. This technical formation commonly signals a bullish reversal. A falling wedge is created when price action tightens between two descending trendlines and breaks out to the upside. Market analyst Scott Melker explained that this pattern, along with technical analysis, indicates a likely price target for the Bitcoin market.
"The 200-day moving average remains overhead as resistance, and the horizontal level at $88,804 is still the key barrier to flip market structure and print a higher high." - Scott Melker
Melker further pointed to this rule of technical analysis which would bring Bitcoin’s target up to over $101,570.
Historical Parallels and Future Outlook
Bitcoin whales are beginning to mimic the same type of accumulation patterns going into the 2020 bull run. This unusual behavior raised eyebrows, with many making predictions of a coming boom any day now. Meanwhile, big players continue to stack Bitcoin aggressively. Combined with strong positive technical indicators and a lessening of selling pressure, all of this points to a hopeful bullish direction for Bitcoin price.
