Bitcoin Whale Inflows Surge 26.41% Amid Mixed Market Signals
1min read Bitcoin (BTC) is currently experiencing a potential rebound as whale inflows have increased, but underlying metrics and resistance levels suggest caution against immediate bullish predictions. Recent data shows that Large Holder Netflow has increased by 26.41% over the past week, indicating a surge in whale activity and a measure of confidence among larger holders in the current price range. However, the broader sentiment remains somewhat pessimistic due to the drastic decline in the 30-day and 90-day Netflows, at -108.09% and -110.13%, respectively. This suggests that, despite the recent gains in inflows, long-term selling pressure could hinder BTC’s ability to maintain upward momentum.
The on-chain activity paints another layer of complexity. Data shows 925,914 active addresses in the last 24 hours, marking the highest engagement level in six months. This uptick might suggest heightened interest in Bitcoin, yet metrics show a concerning divergence: the Price DAA Divergence stands at -225.82%, indicating that price movements are surpassing organic address growth, highlighting a potential bubble risk.
Valuation models currently provide mixed signals. The Puell Multiple rests at 1.36, indicating that miner revenues remain healthy. Conversely, both the NVT and NVM ratios have surged by 50% and 26%, respectively, which suggests that Bitcoin’s market capitalization is increasing at a rate faster than its transaction and user engagement metrics. Further complicating the outlook, the Stock-to-Flow Ratio has decreased by 50%, leading to skepticism regarding long-term scarcity and value retention. These conflicting signals imply that while foundational elements of Bitcoin’s market health appear stable, the overall market sentiment seems to remain in a neutral to bearish stance.
Moreover, a cluster of liquidity near $94,000 and $98,000 designates these levels as critical for traders. A break above $98K could lead to a series of short liquidations, potentially propelling Bitcoin higher. Conversely, a drop below $94K might trigger long position liquidations, leading to downward price pressure. Despite encouraging signs from rising network activity and fresh whale inflows, the persistent long-term sell pressure, negative divergences, and valuation disparities caution against an immediate breakout above $98K. It’s crucial for traders and investors to remain vigilant, as strong momentum exists, but a prudent wait-and-see approach is warranted until more favorable conditions emerge.
In summary, while Bitcoin’s recent activity suggests potential recovery, the mix of short-term optimism and long-term caution necessitates careful monitoring of key indicators. Staying alert to market movements around the established liquidity zones will be vital for executing sound trading strategies.
