Bitcoin Whales Go on Big Accumulation Spree but Don’t Be Bullish Just Yet: Analysts

Although the primary cryptocurrency has remained relatively stable over the past few days, large market participants known as whales have used the opportunity to accumulate a sizeable portion of the asset.

On-chain data reveals intensifying buying pressure on Binance as well, which could lead to short-term gains. However, one analyst outlined the key resistance level that has to be overcome before the bulls can find a way back.

BTC Whales Go on Accumulation Spree

Ali Martinez updated his 165,000 followers on X that these market participants have increased their BTC holdings by approximately 10,000 units in the past 72 hours alone. In terms of USD, this substantial stash is worth around $670,000,000 as of current prices, as the asset remains rangebound at $67,000.

Such major purchases could have a two-fold impact on bitcoin. First, they decrease the immediate selling pressure. Second, their actions could be followed by retail, which tends to mimic whales. Data from CW show that spot buying of bitcoin on the world’s largest crypto exchange, Binance, has also increased over the past few days, which could serve as a catalyst for a more substantial upside move.

However, fellow analyst Crypto Tony doesn’t support a bullish narrative. He noted that BTC will continue to chart lower highs and lower lows as long as it remains below the $69,000 resistance.

Bitcoin Summer Is Over

Looking at the macro charts, Merlijn The Trader warned that bitcoin’s ‘summer’ is over. The summer in question is not the actual temperate season, but it serves metaphorically to showcase the opposite of ‘crypto winter.’

His chart below demonstrates that BTC tends to grow exponentially for a certain period (summer) before it goes into three consecutive red zones. In 2017, this same sequence led to an 83% drop. Four years later, the decline was by 77%.

After the October ATH of over $126,000, BTC plunged by around 52% to its February bottom of $60,000. Consequently, Merlijn explained that more painful declines might be on the horizon if history is any indication. The graph below shows that BTC has just entered its first red zone; two more could follow.

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