Whale Accumulation Surge: Is It Really Bullish for BTC?

Whale accumulation on Bitcoin's network has surged in recent times, but experts are warning that it may not be as bullish for BTC as it seems.

A total of over 38,000 BTC flowed into Accumulation Addresses, which are tied to long-term holders and OTC settlement wallets. This scale of movement is typically seen as a positive sign by traders, but closer inspection reveals that the whales' average realized price is around $70,000, significantly higher than Bitcoin's current spot price of around $64,000.

This has led some analysts to speculate that the whales may not be buying into the asset for long-term holding, but rather positioning themselves to exit near break-even if Bitcoin revisits the $70,000 zone. This theory is supported by Abramchart, who pointed out in a recent CryptoQuant post that 'the inflows are undeniably significant and deserve close attention, but the $70K realized price may become a major decision zone.'

A bullish divergence between Bitcoin's price and Net Capital Flows data has also been noted by analyst Ali Charts, who pointed to a similar pattern seen before Bitcoin's rally to $126,000.