Bitcoin News Today: Whales Stockpile Bitcoin Amid Downturn, Hinting at Bullish Turn

Bitcoin is encountering a surge in selling pressure as the asset trades near the $114,971 level, with analysts closely monitoring the reaction from large investors and the potential for a reversal in downward momentum. The recent price action has seen a decline of about 6.22% from its high of $124,000 on August 14, raising concerns among market participants. However, accumulation activity from large holders—commonly referred to as “whales”—has intensified, suggesting that deep-pocketed investors may be positioning for a potential rebound.

According to Santiment, a leading market intelligence platform, wallets holding between 10 and 10,000 Bitcoin have added more than 20,000 BTC since August 13, indicating increased buying interest at current price levels. This accumulation trend is not new; the same group of wallets has been steadily increasing their holdings since March 22, with a total acquisition of 225,320 BTC over that period. Historically, such behavior from large investors has often preceded upward price movement, offering a potential bullish signal amid the current downturn [1].

Market analyst Axel Adler Jr. also points to a shift in exchange outflows as evidence of strengthening buying pressure. He notes that the 30-day average exchange netflow has become more negative, dropping from -1.7K to -3.4K BTC per day. This acceleration in outflows suggests that holders are increasingly removing Bitcoin from exchanges, a sign that they may be preparing for a potential price recovery. Adler explains that such a divergence—where selling continues in the face of rising accumulation—can be a precursor to a price reversal [1].

Bitcoin’s price remains below its record high, having retreated 7.3% since reaching that level. Over the past month, the asset has fallen 2.6%, though it still offers a 96% return for investors who have held it year-over-year. The broader cryptocurrency market has also been affected, with total capitalization declining by more than $100 billion in response to growing geopolitical uncertainties, including the meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy on August 18 [1].

Despite these headwinds, Bitcoin maintains a strong position relative to other cryptocurrencies, with a market dominance of nearly 58%. Traders are now advised to monitor whether whale accumulation and reduced exchange outflows can outweigh short-term selling pressure from smaller investors. If large holders continue to accumulate and the market absorbs selling pressure efficiently, it could set the stage for another price surge [1].

In a related development, Ethereum’s exchange supply is also drawing attention, as on-chain analysts report that ETH reserves on centralized exchanges are declining rapidly. According to crypto analyst @rovercrc, this depletion of liquidity suggests reduced immediate sell pressure and increased holder conviction. Historically, such a drop in exchange reserves has been linked to price appreciation, as fewer coins become available for short-term selling [2]. This trend has also been supported by on-chain data showing a consistent outflow of ETH, further reinforcing the potential for a bullish shift in sentiment [2].

While the immediate focus remains on Bitcoin’s price action and accumulation patterns, the broader market is also showing signs of strengthening fundamentals. With both Bitcoin and Ethereum exhibiting accumulation by large investors and a reduction in exchange liquidity, the stage may be set for a renewed period of upward momentum. Analysts will be closely watching how institutional flows, macroeconomic conditions, and on-chain behavior evolve in the coming weeks to determine whether the market can overcome current selling pressure and reestablish a bullish trend.

Source: [1] Bitcoin Whales Add 20K BTC Post-Dip: Historical Data Hints At Upward Price Momentum (https://cryptopotato.com/bitcoin-whales-add-20k-btc-post-dip-historical-data-hints-at-upward-price-momentum/) [2] ETH Exchange Supply Is Drying Up, Says Crypto Rover: Liquidity Impact and Trading Signals (https://blockchain.news/flashnews/eth-exchange-supply-is-drying-up-says-crypto-rover-liquidity-impact-and-trading-signals) [3] Ethereum (ETH-USD) Price Forecast: Buy Signal as ETF Demand, Staking Supply Squeeze, and Whale Accumulation Drive Bullish Outlook (https://www.tradingnews.com/news/ethereum-eth-usd-price-forecast-etf-demand-saking-supply-squeeze)