What Will Be the Response of Bitcoin’s Price?

Summary

• Large holders of BTC have made a significant comeback, amassing over $2 billion in the cryptocurrency within a brief period.
• Increased outflows from exchanges and other vital indicators present a bullish outlook, hinting at a possible price increase for the asset soon.

Whales on the Buying Spree

Prominent analyst Ali Martinez reported on X that large investors have acquired over 20,000 BTC in just the last two days.

Martinez’s analysis indicates that the total bitcoin holdings for this group of investors exceed 4.7 million BTC, accounting for around 23.7% of the total circulating supply.

The accumulation trend among large investors is typically considered a positive indicator that may precede a price surge. This suggests enhanced confidence in the asset, potentially motivating smaller investors to participate as well.

Many users on X responded to the news, speculating that Michael Saylor might be among those driving the purchases. His co-founded company is now the leading corporate holder of bitcoin, and personally, he owns over 17,000 BTC, as he confirmed last year.

Other Positive Indicators

The actions of large holders are not the sole signals pointing towards a potential BTC price rally. Recently, the availability of the asset on exchanges has significantly decreased. Ali Martinez noted that 30,000 BTC have been taken off centralized platforms, and data indicates that there were positive exchange netflows on only seven of the last thirty days.

This indicates a trend toward self-custody, which reduces immediate selling pressure.

It is also important to monitor Bitcoin’s Relative Strength Index (RSI). This momentum oscillator evaluates the speed and size of recent price changes and is scaled from 0 to 100.

An RSI below 30 generally signals that the asset may be oversold and could be preparing for a rebound. In contrast, an RSI above 70 is considered a bearish sign. Recently, the RSI has been declining and is currently just above the lower threshold.

For those wanting to explore additional elements that may influence BTC’s price volatility in the near term, further information is available in our detailed analysis.