Bitcoin Whales Accumulate as Prices Plummet to Three-Month Low

Bitcoin (BTC) prices plummeted to a three-month low near $86,000 on February 25, with data suggesting further declines. However, despite the downward trend, Bitcoin whales have been actively accumulating the cryptocurrency.

After weeks of defending its long-term market structure, Bitcoin finally broke down, and the move could persist over the next few weeks. On February 24, 26,430 BTC were deposited to whale accumulation addresses, which are typically linked to over-the-counter (OTC) deals and long-term custody. This suggests that large investors are taking advantage of the dip to increase their holdings.

The sharp correction also affected short-term holders (STH), with addresses that held BTC for less than 155 days moving 27,500 BTC at a loss over the past 24 hours. This indicates that some investors are capitulating and selling their positions as the price drops.

Bitcoin's daily candle closed below the $92,000 range on February 24, confirming a double-top pattern that has been present for months. With a sharp bearish reaction occurring right after the pattern's completion, the technical drawdown is estimated to be 16% from the neckline, around the $78,000-$76,000 level.

However, some analysts believe that Bitcoin could find support in the $81,700 to $85,100 range, where a fair value gap was formed on November 11, 2024. This liquidity gap was not filled, and Bitcoin could eventually find bidders in this zone. Additionally, a big cluster of spot bids on Binance around $84,000 to $86,000 suggests that there is significant interest in buying Bitcoin at these levels.

If Bitcoin does not respect the support level of $81,000, the final support rests between the CME gap at $77,000 and $80,000. A drop to $77,000 will also complete the estimated price target of the double-top pattern.