How Bitcoin's Price Rebound Is Influenced by New Whale Accumulation

Since hitting a low of $78,620 on March 10, Bitcoin (BTC) has shown a notable recovery, gradually trending upward.

The flagship cryptocurrency has experienced a 1.2% increase in its price over the past week, supported by on-chain data that indicates a significant rise in whale accumulation.

Surging Bitcoin Whale Demand: A Dip Buying Opportunity

A recent analysis by the anonymous CryptoQuant expert, Onchained, reveals that a new cohort of Bitcoin whales has entered the market. These sizable investors control wallets with at least 1,000 BTC and display an average acquisition duration of under six months.

“On-chain data confirms that since November 2024, these wallets have collectively acquired over 1 million BTC, establishing themselves as key players in the market. Their accumulation rate has significantly increased in recent weeks, with more than 200,000 BTC acquired just this month,” Onchained stated.

The increasing interest from new whales indicates a renewal of optimism around Bitcoin's long-term value. The recent weakness in BTC's price, among multi-year lows, has presented a ripe opportunity for large investors to engage in a 'buy the dip' strategy, aiming to sell at higher future prices.

Additionally, data from IntoTheBlock indicates that Bitcoin holders have extended their holding periods recently, underscoring a slow return to bullish sentiments regarding the cryptocurrency. Indeed, this duration has increased by 12% over the past week.

The holding time indicates how long assets are kept before being sold or moved. An increase suggests a higher investor conviction as more individuals choose to keep their coins rather than liquidating them.

This trend can alleviate downward selling pressures by gradually decreasing supply in the BTC market, which might lead to an uptick in the coin’s value in the short term.

Bitcoin on the Brink: Will It Rebound to $89,000 or Fall to $77,000?

Although the Elder-Ray Index for BTC continues to reflect downward signals, the severity of these signals has been tapering off in recent days.

This indicator assesses the balance between buying pressure and selling activity to forecast price movements. A diminishing size of the bars indicates a potential weakening of bearish momentum.

If this pattern persists, it could indicate that sellers are losing traction while buyers slowly re-enter the market. Consequently, this could result in a halting of BTC's current downtrend, setting the stage for a recovery toward a price point of approximately $89,434.

Conversely, should selling pressure strengthen, there is a risk that Bitcoin may drop to $77,114.