Key Takeaways
Bitcoin’s seller wave dried up as Spent Volume hit 529K BTC, while whales accumulated, Exchange Whale Ratio fell, and Netflow turned negative at -$128 million. Can $112K hold if sellers reappear?
After hitting a local low of $111k, Bitcoin [BTC] bounced back to $117,421 before retracing to a low of $115,411.
As of press time, Bitcoin traded at $115,601, up 2.45% in 24 hours — a sign of building upward pressure.
But what was behind this price recovery?
Bitcoin’s wave of sellers dries up
According to CryptoQuant analyst Axel Adler, Bitcoin’s Spent Volume (SMA-7d) dropped sharply, with the weekly average sliding to 529K BTC per day.
Source: CryptoQuant
Such a massive decline signaled that the primary wave of sellers at current price levels has dried up, with sellers taking a step back in the market.
This is primarily due to reduced incentives to sell following Bitcoin’s recent dismal performance.
In fact, Realized Profit fell across cohorts. Long-term holders booked only 7.2K BTC in profit, while short-term holders realized just 1.8K BTC, despite the bounce.
Source: Checkonchain
Whales pull coins off exchanges
With Bitcoin swinging, whales have repositioned themselves with less exchange activity.
Source: CryptoQuant
CryptoQuant data showed the Exchange Whale Ratio fell to a 12-day low of 0.43. When this metric drops, it suggests that fewer whales are sending their BTC to exchanges compared to overall flows.
Typically, such a decline reflects substantial accumulation, with whales sending their BTC to private wallets rather than preparing to sell. This sentiment is especially prevalent among Bitcoin’s Megawhales.
Source: Checkonchain
According to Checkonchain, MegaWhales and Exchanges (>10K BTC) posted a balance change of -20.36K BTC, showing withdrawals outweighed deposits. Large holders were accumulating, not selling.
Historically, reduced selling activity from large holders while they accumulate has preceded higher upward pressure on price, often a prelude to higher prices.
Can easing pressure boost BTC?
According to AMBCrypto’s analysis, Bitcoin recently rebounded as selling pressure declined while whale accumulation remained constant.
As a result, King Crypto’s Netflow turned negative, reaching a low of -$128 million, a clear sign of aggressive accumulation.
Source: CoinGlass
Having said that, if whales continue to absorb supply, Bitcoin could reclaim $117K and test $119,600.
Next: DeFi revival fuels AAVE’s rally: Is $400 on the cards?
