Bitcoin has recently shown signs of price recovery, bouncing back from local lows. This resurgence is largely attributed to a significant shift in market dynamics, characterized by a reduction in selling pressure and a concurrent surge in accumulation by major holders.
Diminished Selling Pressure Fuels Recovery
The recent upward movement in Bitcoin's price is strongly linked to a notable decline in selling activity. Data indicates a sharp drop in Bitcoin's Spent Volume (SMA-7d), with the weekly average falling significantly to 529K BTC per day. This reduction signals that the primary wave of sellers at current price levels has largely dissipated, as lower incentives to sell follow Bitcoin's recent dismal performance. Consequently, realized profits across various holder cohorts have also decreased, suggesting sellers are less inclined to offload their holdings, thereby easing downward pressure on the market.
Whales Accumulate, Signaling Bullish Sentiment
Further bolstering Bitcoin's recovery is the assertive accumulation by large investors, commonly known as whales. The Exchange Whale Ratio, a key metric, has fallen to a multi-day low of 0.43, indicating that fewer whales are depositing BTC onto exchanges compared to overall flows. This trend is typically interpreted as a sign of substantial accumulation, where whales move their assets into private wallets rather than preparing for sales. This sentiment is particularly evident among "Megawhales" (holders of >10K BTC), who have shown significant net withdrawals of over 20K BTC from exchanges. Coupled with a negative Netflow, reaching -$128 million, this aggressive accumulation by major holders historically precedes periods of increased upward price pressure, suggesting a potential prelude to higher prices if this absorption of supply continues.
