Bitcoin Rebounds 1.2% as Whales Accumulate 200,000 BTC

Bitcoin has shown signs of recovery after hitting a low of $78,620 on March 10. The leading cryptocurrency has experienced a 1.2% price increase over the past week, driven by a surge in whale accumulation. According to a report by pseudonymous CryptoQuant analyst Onchained, a new wave of Bitcoin whales has emerged, holding at least 1,000 BTC wallets with an average acquisition age of under six months. These whales have collectively acquired over 1 million BTC since November 2024, with a significant portion of this accumulation occurring in recent weeks, totaling more than 200,000 BTC.

This accumulation trend is indicative of a resurgence in bullish confidence in Bitcoin's long-term performance. The recent decline in Bitcoin's price to multi-year lows has presented an opportunity for these large investors to "buy the dip" and potentially sell at a higher price in the future. Additionally, the holding time of Bitcoin by its investors has increased by 12% over the past week, further highlighting the gradual comeback in bullish sentiments toward the coin. The holding time of an asset’s transacted coins measures the average length of time its tokens are held before being sold or transferred. When this extends, it reflects stronger investor conviction, as investors choose to keep their coins rather than sell. This can help reduce the selling pressure as supply dries up gradually in the BTC market, driving up the coin’s value in the near term.

Despite the positive signs, Bitcoin's Elder-Ray Index continues to post red histogram bars, indicating bearish pressure. However, the size of these bars has gradually reduced over the past few days, suggesting that bearish pressure is weakening. This could slow down Bitcoin's downtrend and potentially lead to a rebound, with its price climbing toward $89,434. On the other hand, if selling pressure strengthens, Bitcoin risks plummeting to $77,114. The future of Bitcoin's price remains uncertain, but the recent surge in whale accumulation and the increase in holding time are positive indicators for the cryptocurrency's long-term performance.