"At the same time, the amount of Bitcoin held on exchanges dropped to a seven-year low, meaning less Bitcoin is available to buy or sell than at almost any point in the last decade. That combination has preceded every major Bitcoin recovery of the last decade, even if the timing between accumulation and recovery has rarely been quick."
"A bottom signal is any data point, on-chain or otherwise, that suggests a price is near its lowest point before recovering. For Bitcoin, whale accumulation is one of the most-watched bottom signals, because large holders have historically bought more during fear-driven sell-offs and have been proven right in the past."
"Every major Bitcoin recovery has started with large holders buying while everyone else was selling. The pattern goes back over a decade and has held in every cycle, though the timing between accumulation and price recovery has never been immediate. Bitcoin spent most of 2015 below $300, and most investors had written it off. Whale addresses grew by 18% that year as large holders quietly built positions in silence."
"When Bitcoin crashed to $3,800 in March 2020, whale wallets absorbed supply quickly during one of the sharpest fear events in crypto history. What followed was a 1,700% rally over 18 months, taking Bitcoin from $3,800 to nearly $69,000. The whales who bought during the peak panic did so at the best prices of the entire cycle."
Bitcoin held on exchanges has fallen to a seven-year low, reducing available supply for buying and selling. This combination has preceded every major Bitcoin recovery over the last decade, even when the gap between accumulation and price recovery has rarely been quick. A bottom signal is any on-chain or other data point suggesting price is near its lowest point before recovering. Whale accumulation is widely watched because large holders historically buy more during fear-driven sell-offs and have been proven right. Each major recovery has begun with large holders buying while others sell, with examples from 2015–2017, 2018–2019, and the March 2020 panic.
Read at 24/7 Wall St.
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