Bitcoin continues struggling near $80,000 after experiencing a fresh daily decline exceeding 4%. Major investors are positioning themselves strategically amid the turbulence. Their movements could signal Bitcoin's next directional shift.
Santiment, a crypto analytics platform, revealed significant changes in Bitcoin's whale and shark wallets over six months. These large holders have demonstrated substantial influence over market direction.
Wallets containing 10 or more BTC began heavy accumulation around October 12. This coincided with the start of Bitcoin's latest bull rally. The trend continued until late December when activity temporarily paused during a holiday dip.
Accumulation resumed strongly on January 12. This occurred approximately one week before Bitcoin reached its all-time high of $109,000. The timing suggests these large holders anticipated the rally's peak.
From mid-February, whales and sharks began offloading their holdings. This aligned closely with a broader market downturn. Bitcoin's price declined while retail traders were initially encouraged by temporary bounces. Recent data indicates a renewed accumulation phase has begun. Since March 3, these key players have collectively added approximately 4,846 BTC to their wallets. This accumulation continues despite highly bearish retail sentiment.
The significant re-accumulation has yet to visibly impact Bitcoin's price. Historical patterns suggest such moves by whales and sharks often precede major market shifts. Santiment stated that if accumulation continues, the second half of March could see meaningful recovery.
QCP Capital noted Bitcoin's $80,000 level currently holds as key support. Prices may struggle to move higher short-term since hype around the Strategic Bitcoin Reserve appears already factored in. Real bullish momentum is expected to return only later this year.
Analyst Kevin Svenson identified that Bitcoin has re-entered a critical zone within its weekly parabolic trend. "Bitcoin is still holding above last week's lows, and no new lower low has been formed yet," Svenson said. He considers this a crucial sign that the bullish structure remains intact.
Svenson warns this may be Bitcoin's final opportunity to maintain an exponentially higher low. Preserving the broader uptrend remains essential. A breakdown could jeopardize parabolic momentum and potentially lead to deeper corrections.
Trader CrypNuevo offered additional perspective on Bitcoin's market structure. He explained the ongoing price action could serve as a retest of the crucial 1-week 50 EMA. This historically reliable bull/bear market indicator sits around $77,000.
"Until a confirmed support/resistance flip occurs, similar to March 2022, the bull market structure remains valid," CrypNuevo stated. He also noted Bitcoin dominance climbing toward 63-64%, explaining current weakness in alternative cryptocurrencies.