20,000 BTC Purchased in Just 2 Days by Whales: How Will Bitcoin’s Price React?

TL;DR

• BTC whales have returned in full force, accumulating more than $2 billion worth of the cryptocurrency in a short timeframe.
• The rising exchange outflows and other essential factors are also bullish factors, suggesting that the asset’s price may head north soon.

Whales Filled Their Bags

The renowned analyst Ali Martinez unveiled on X that large investors scooped up more than 20,000 BTC in the past two days alone.

According to Martinez’s chart, the collective bitcoin holdings of this investor cohort are just north of 4.7 million assets, which represents around 23.7% of the circulating supply. 

Accumulation from whales is generally viewed as a bullish factor that may be a precursor of a price rally. It shows that such investors have increased their confidence in the asset, which could encourage smaller players to join the bandwagon as well. 

Numerous X users reacted to the post, with some assuming that Michael Saylor could be among the individuals contributing to the buying spree. The company he co-founded has become the world’s largest corporate holder of bitcoin, while he personally owns over 17,000 BTC, as he confirmed last year. 

Additional Bullish Elements

The aforementioned actions of the whales are not the only factor suggesting that the price of BTC could be on the verge of a rally. Over the past month, the supply of the asset on exchanges has dried up. Ali Martinez revealed that 30,000 BTC had been moved off centralized platforms within the timeframe, while the chart below shows that the exchange netflows were positive in only seven out of the last 30 days. 

This suggests a shift from these entities toward self-custody solutions, which reduces the immediate selling pressure. 

Bitcoin’s Relative Strength Index (RSI) should also be taken into account. The momentum oscillator measures the speed and magnitude of recent price changes and varies from 0 to 100.

When the ratio drops below 30, it typically indicates that the asset may be oversold and could be poised for a resurgence. Conversely, anything above 70 is interpreted as a bearish element. Over the past several hours, the RSI has been on a downward trend, currently standing just north of the lower mark. 

Those willing to observe additional factors that may trigger enhanced volatility in BTC’s price in the short term can refer to our dedicated article here.