Bitcoin whales are absorbing over 300% of the newly mined BTC supply, indicating strong bullish sentiment amidst macroeconomic challenges. Larger holders are accumulating more than three times the new issuance, signalling a shift towards long-term investment. Bitcoin’s recent breakout from a falling wedge pattern suggests a possible price target of $100,000 by May, although current prices face resistance from key EMAs.
Bitcoin’s wealthiest traders, often referred to as whales, are increasingly optimistic despite challenging macroeconomic factors. Recent on-chain data indicates they are absorbing over 300% of the newly mined supply of Bitcoin (BTC). Meanwhile, exchanges are experiencing significant outflows, further supporting a shift towards self-custody and long-term holding strategies among investors.
According to data from Glassnode, larger holders, specifically those with 100 to over 1000 BTC, are accumulating at an unprecedented rate, absorbing more than three times the annual issuance. This behaviour signals a structural transformation as institutional acceptance of Bitcoin, spurred by the approval of spot Bitcoin ETFs last year, results in reduced supply on exchanges and heightened bullish sentiment among substantial holders.
Whales with holdings exceeding 10,000 BTC show a robust accumulation trend, currently at a Trend Accumulation Score of approximately 0.7, as reported by Glassnode. This score reflects a behavioural shift from distribution to accumulation among larger holders. Smaller cohorts, including those with 10-100 BTC and 1-100 BTC, have also improved their scores, indicating a return to neutral accumulation after earlier sell-offs.
Analyst Mignolet highlights that this accumulating behaviour by whales closely mirrors patterns observed prior to Bitcoin’s significant price increase in 2020. In terms of price movement, Bitcoin has recently broken out of a multimonth falling wedge pattern, which may suggest a bullish trend with a potential target of $100,000 by May.
A falling wedge typically indicates a bullish reversal, and when applying technical analysis, the expected price target is calculated to be approximately $101,570. Currently, Bitcoin’s price confronts the 50-day and 200-day exponential moving averages (EMAs), approximately at $85,300, serving as significant resistance levels. A strong rejection here could lead to a retracement towards the wedge’s upper trendline near $80,000. According to market analyst Scott Melker, continued bullish momentum is essential to establish market strength and achieve higher price levels.
This article does not render investment advice or recommendations. It is imperative that all investors conduct thorough research and consider risks associated with trading.
