Bitcoin (BTC) Price Data Shows Renewed Buying Activity From Large Holders, Sparking Rally Talk

Current market price data shows renewed buying activity from large Bitcoin (BTC) holders, sparking talk of a potential rally. By Gladis Macharia. Updated Apr 14, 2021.

Current market price data shows renewed buying activity from large Bitcoin (BTC) holders, sparking talk of a potential rally. According to the market outlook, whales are now buying around three times more Bitcoin than what is being mined daily.

This behaviour has fueled expectations that the coin could break out to the $100,000 mark as it trades at a key price level. At the time of writing, the BTC price is at $84,275.

Bitcoin Price Boasts Bullish Outlook As BTC Whale Accumulation Grows

According to Glassnode’s data, Bitcoin large investors, those holding between 100 and 1,000 BTC, are accumulating at an aggressive pace. They are currently absorbing more than 300% of Bitcoin’s annual supply issuance.

It is worth noting that this aggressive buying behavior comes as the top crypto exchanges experience consistent outflows. This suggests that more BTC whales and shark holders are choosing long-term storage over quick trades.

According to reports from crypto analytics firm Chainargos, major crypto exchanges have seen an outflow of over 16,000 BTC in the past 24 hours. This marks the fourth consecutive day of net outflows from these platforms.

As of Thursday, these exchanges saw a total outflow of 26,368 BTC, while inflows came in at 9,386 BTC.

This trend signals growing confidence in the asset’s long-term value. Many of these large holders have continued to buy during periods of Bitcoin price correction.

Based on market observations, whales treat the dip as an opportunity to accumulate rather than a reason to exit. Onchain analyst Mignolet mentioned that this current behaviour shows a similar pattern to that of Bitcoin’s 2020 bull run.

Market data also shows that Bitcoin is testing its 50-day and 200-day exponential moving averages as resistance. In an earlier BTC price analysis, CoinGape noted that these levels are around $85,500.

If the price fails to break above this point, it could face a pullback. If the top coin loses this level, the next key level to watch is the upper trendline of the wedge pattern, which is near $80,000.

BTC Price Consolidation Teases Breakout

The Bitcoin price has been in correction for almost three months since the beginning of the year when BTC topped $100,000.

Since then, it has dropped by just over 25%. Analysts from Bitfinex pointed out that this drop fits the usual pattern seen in past bull markets. Mid-cycle corrections of 25% to 35% often occur before the price increases further.

However, despite the correction, activity in the spot market has remained strong. The Spot Cumulative Volume Delta (CVD) has been rising steadily, showing buyers are still active.

This period of calm at a key price level, along with strong buying activity, could suggest large-scale accumulation is taking place. In the past, this has often led to sudden and powerful price breakouts.

Another factor that could influence the Bitcoin price is a rumor circulating online. According to a post on the eToro forum, an anonymous user claims that China is planning to dump its Bitcoin reserves.

According to the user, who says they have a source close to the Chinese government, Beijing is planning to sell its entire Bitcoin holdings, which could amount to as much as 150,000 coins.

The move is reportedly part of a broader effort by the Chinese government to crack down on cryptocurrency trading and investment.

Earlier this year, the Chinese government banned all cryptocurrency exchanges and ordered them to close their operations by the end of March. The government has also been warning members of the public against investing in cryptocurrencies.

It is still too early to say whether this rumor is true or not. However, if the Chinese government were to sell a large amount of Bitcoin, it could have a significant impact on the cryptocurrency market.

A potential selloff from China could push the Bitcoin price down to $40,000, one analyst predicts.