Bitcoin [BTC] Bottom May Be In as Whales Continue to Accumulate While STHs Capitulate

A Bitcoin [BTC] bottom typically forms when several key conditions align. First, it establishes a critical accumulation zone where sell-side liquidity

Bitcoin price has been hovering above $80k despite the massive sell-side pressure. According to on-chain data, this is due to Bitcoin whales actively accumulating while smaller investors are capitulating.

Bitcoin price is showing signs of a bottom as it continues to hold above the critical support level of $80k. Despite the broader cryptocurrency market sentiment swinging between fear and greed, Bitcoin’s ability to stay afloat might be due to a familiar pattern spotted by on-chain data.

As on-chain data from CryptoQuant showed, Bitcoin whales, or those holding 1k–10k BTC (marked in orange), have been sharply increasing their total balance despite the recent market correction.

This period of accumulation has been a key factor in preventing a deeper market correction, suggesting that whale activity is absorbing sell-side pressure and providing the support needed to stabilize Bitcoin prices.

As noted by AMBCrypto’s recent analysis, the SOPR (Spent Output Profit Ratio) remains below 1. This is a sign that short-term holders (STHs) with positions older than 155 days have been realizing losses.

Put simply, with Bitcoin down 23% from its all-time high of $109k, a significant pool of buyers’ acquisition value remains well above the press time market value of $83k.

According to AMBCrypto’s analysis, the average acquisition price for these STHs, who hold coins for more than 155 days, is $95,138, where roughly 4.28 million BTC were traded. This equates to approximately $407 billion in potential sell-off risk from these holders.

Should STHs capitulate, we could see a surge in sell pressure. Even so, the question remains – Will whales continue to absorb this pressure and confirm $80k as a strong bottom?

Bitcoin whales are accumulating as smaller investors panic sell

The pattern of Bitcoin whales accumulating while smaller investors panic-sell is a scenario that usually plays out at cycle bottoms. For instance, during the 2020 cycle, we saw a similar narrative unfold.

During that phase, BTC broke above $10k for the first time by mid-Q3, kicking off what came to be known as the “breakout cycle.”

In a striking parallel, CryptoQuant data showed no signs of Bitcoin whales exiting during the 2020 bull run. This implied that these whales may still be absorbing sell-side pressure. This could lay the groundwork for a major shift in the current cycle.

Right now, there is no significant distribution from these whales. In fact, instead of going dormant, they are actively accumulating. Hence, the chances of a collapse below $77k–$80k due to macroeconomic uncertainty or weak hands exiting are low.

U.S. buy orders remain robust as Bitcoin exchange reserves continue to plunge.

If these dynamics align in the coming days, Bitcoin could be on the cusp of confirming a market bottom.