Whales Pounce: Bitcoin Poised for Next Rally as Demand Metrics Surge
Bitcoin's recent price action has seen a period of muted consolidation, largely trading within the $88,000 to $90,000 range. Historically, such phases often precede significant market movements, prompting keen observation from investors. A recent on-chain analysis offers a compelling bullish prognosis, suggesting that the flagship cryptocurrency is gearing up for its next major rally.
Whale Accumulation Reaches All-Time High
On-chain analyst CoinNiel, in a detailed CryptoQuant post, posits that Bitcoin could be at the nascent stages of a robust bullish trend. This optimistic forecast is anchored by two key metrics: the Accumulator Address Demand and the Liquidity Inventory Ratio. The Accumulator Address Demand, which meticulously tracks the net buying pressure from addresses that consistently acquire Bitcoin without significant selling, has notably reached an all-time high. This behavior is characteristic of large-scale Bitcoin holders, commonly referred to as "whales." Their consistent accumulation, often involving substantial withdrawals from exchanges, translates into this metric's rise, indicating an intense "fear of missing out" (FOMO) and strong underlying buying pressure among these influential market participants.
Liquidity Squeeze Signals Impending Supply Shock
Further reinforcing CoinNiel’s bullish perspective is the Liquidity Inventory Ratio (Month). This metric assesses the existing Bitcoin demand against the total supply available on exchanges, revealing whether demand is capable of overwhelming current availability. A sharp increase in this ratio typically signifies that fresh supply is being rapidly absorbed by demand. The analysis reveals that the Liquidity Inventory Ratio has also reached an extreme value of 3.8. Significantly, this extreme reading is predominantly driven by activity on US exchanges, suggesting that for the first time in several years, these platforms are experiencing an exceptional demand relative to the Bitcoin supply at hand. While a 3.8 reading theoretically implies an imminent supply shock, the analyst clarifies it's more a reflection of intensified whale demand than a definitive predictor of immediate supply constraints. Collectively, these two metrics paint a distinctly bullish picture, indicating that major players are strategically positioning themselves for a sustained upward trajectory in Bitcoin's price.
Bitcoin's Current Market Snapshot
As of this report, Bitcoin is valued at approximately $88,520, reflecting a minor decline of just over 1% in the preceding 24 hours.
