Whale Bitcoin Accumulation Hits Record as Exchange Reserves Plunge

Data from Sentiment shows whale Bitcoin accumulation at an all-time high. In the space of three weeks alone, wallets in the 10,000 to 100,000 BTC range have accumulated more than 86,000 coins, the most since April and an indication that market dynamics are changing.

Whales Step In as Retail Sells

Analysts on the current episode of Incrypted pointed to the way big operators have been taking advantage while retail traders are in a hurry to book their profits. There has been a good deal of this kind of coordinated activity from whales during the lull in the market as they have built positions and smaller investors have made their exit.

The record volumes of BTC added by some very well-heeled wallets are taken by Sentiment as a wager on more upside from institutional and high net worth clients. One could call the gap in approach between them and the retail side a textbook case of sentiment in flux.

Historic Exchange Outflows and Market Movements

Then there was Monday, October 5, when more than 24,000 BTC left exchanges, an outflow in a single day not seen in seven months. To many, it is a bullish sign, the sharp drop in balances meaning holders are putting their coins in cold storage with no intention of parting with them any time soon.

And the flows tell their own story: from September 28 through October 2 the market saw about $83 million in spot Tether and Bitcoin come in, even as $118 million was pulled from Ethereum wallets. It is another data point for the thesis that the big players favor Bitcoin.

Shifting Market Indicators and Key Price Levels

As for the Coinbase premium index, the Incrypted team notes it is still in the negative. Open interest in derivatives has come down nearly 10 percent to $26 billion, a sign of less appetite for leveraged speculation compared to spot accumulation.

On-Chain Signals Point to Bullish Cycle

Should the $69,000 mark prove to be support for Bitcoin (it is what short-term holders have paid on average), it may well be the springboard for additional gains, provided the whales keep up their end. And on-chain metrics are looking up; Incrypted has had CryptoQuant analysts note the Puell Multiple is over 1 for the first time in 10 months, which in the past has heralded a new bull market cycle for the asset. Market observers will be watching to see if the positive indicators and the whales’ efforts amount to a rally that has staying power.

This article reflects the channel author’s opinion and is not investment advice.