Key Takeaways
Are Bitcoin Whales Selling or Accumulating?
Despite the recent inflows, long-term net flows have become negative, causing a build-up of whales.
Is Bitcoin Gaining Strength Again?
Not yet. Two failed rallies and weak futures flows are causing bulls to lose momentum.
Bitcoin [BTC] has important support, but the bulls are losing steam.
Despite a spike in whale inflows to Binance last week, long-term net flows have turned negative. Two recent attempts to regain momentum failed.
With price trading below the 30-day fair value and futures flows weakening, buying power appears to be exhausted. It is possible that the market will rebalance before BTC’s next big move.
Whale inflows increase as BTC cools
Binance data shows that BTC whales have been unusually active lately. The seven-day average of whale inflows (1,000-10,000 BTC) rose sharply last week, reaching levels last seen in July.
This usually happens when big players move coins to exchanges, possibly to rebalance portfolios or take profits.
Source: CryptoQuant
Interestingly, this surge in inflows comes as Bitcoin’s price cools from the high of $124,000 to the range of $104,000 to $110,000. Institutions are not retreating yet, but may simply be preparing for what comes next.
Bulls are losing their grip
After two failed comeback attempts on October 13 and 20, Bitcoin’s bullish energy appears to be running out.
Market analyst Axel Adler noted this in a X (formerly Twitter) message that while the first attempt looked promising, it quickly lost steam. The second initially lacked any real power.
Source:
The main momentum index remains stuck below 45, firmly in bearish territory, while BTC continues to trade below its 30-day fair value.
Buyers are tired and the market may wait a while before deciding on BTC’s next big move.
The selling pressure decreases
But that’s true a small sign of optimism.
Source: CryptoQuant
Binance’s Bitcoin netflows have turned sharply negative, meaning more BTC is leaving the exchange than coming in. Investors certainly have more confidence, as coins taken off the exchanges are often intended for long-term holdings.
This could be the beginning of accumulation. Long-term buyers step in, while short-term traders retreat.