- Bitcoin accumulation has been strong among custodial portfolios.
- The largest crypto exchange, Binance, has increased its reserves just like at the beginning of 2024.
Bitcoin [BTC] showed signs of accumulation despite the price drop below the $60,000 zone. ETF inflows have been positive in recent days, which has been an encouraging sign for market sentiment.
There was enormous buying pressure behind the king coin, but will it be enough to overcome last month’s correction? Should traders prepare for a quick recovery or focus on a consolidation phase?
Permanent Bitcoin holders increase their positions
Crypto analyst Axel Adler observed in a message on X (formerly Twitter) that since the Bitcoin correction began just over a month ago, 41k BTC has been added to Binance reserves.
The exchange accumulates BTC for its reserves and liquidity purposes. The January 2024 additions were followed by a strong rally above $40,000.
It may not be surprising if, with their experience and expertise, they have been buying the dip for a month now. Traders may not want to take this as useful information, but more as food for thought.
Ki Young Juthe founder and CEO of CryptoQuant noted that more and more custodial wallets without outflows have emerged during the price drop. They collected 85,000 BTC last month, while 16,000 BTC flowed from the ETF reserves.
This meant that the market-conscious long-term holders were expanding their portfolios, while the more retail-focused ETFs were responding to pressure from their customers, exposing a potential divide between smart money and retail sentiment.
Research into whale behavior
The whale cohort with 1,000 to 10,000 BTC holdings has been sold since mid-May, which was not encouraging. However, holders of $10,000 to $100,000 had added aggressively in late May but sold off a good portion by late June.
Meanwhile, smaller wallets holding 100-1k Bitcoin also piled up.
The graph of Axel Adler underlined the need for investors not to lose their heads. In the previous cycles there were many sharp price drops.
Read Bitcoin’s [BTC] Price forecast 2024-25
The current one may not be over yet, and $52k and $46k are the next levels to watch.
Based on the available data, the price bottom could be close, but it is unclear how close. Traders may want to be prepared for a scenario where support at $52,000 could be temporarily lost.
