Bitcoin (BTC) Price May See a Recovery as Whale Activity Shifts

It's a new week for the market and investors are eager to see whether Bitcoin price will stick to a recovery trajectory. Especially with recent changes in the market triggering a shift in holder dynamics.

It’s a new week for the market and investors are eager to see whether Bitcoin price will stick to a recovery trajectory. Especially with recent changes in the market triggering a shift in holder dynamics.

Bitcoin price just concluded last week with the bears on top by a 2.29% gain from its weekly opening to closing price. Interestingly, that, was its second week concluding in the green since 30 March, despite initially kicking off last week on a bearish leg.

Although Bitcoin’s weekly performance underscores the return of demand after a pause on tariff wars, uncertainty was still prevalent in the market.

Especially as the latest fear and greed sentiment hovered at 45, which was still in fear territory.

The uncertainty signaled potential for short term profit-taking. Price had already dipped by 1.79% from its opening price on Sunday, to its $83,718 press time price tag.

Both the RSI and MFI confirmed a demand cool-down but could this signal that Bitcoin price is not ready to push back above $90,000? Its performance signaled a cautiously optimistic outlook in the market.

Bitcoin Price May Benefit from Whale Inflows

Speaking of uncertainty, CryptoQuant analyst Darkfost explored Binance whale activity under the current market conditions.

The analyst made some interesting observations which may offer insights into BTC’s potential move this week.

According to Darkfost’s analysis, Bitcoin’s 365-day Moving Average continued ticking up, signaling that the market was still in a long term uptrend.

The analysis also noted that whale activity in the short term was on the decline according to the 30-day Moving Average.

The short term whale retreat pushed whale activity to levels previously seen in September and October last year.

Binance whale to exchange ratio collaborated with the same observation, revealing that exchange inflows from whales cooled down significantly.

Darkfost also noted that the 30-day whale to exchange flow was drawn down by roughly $3 billion in the last 30 days.

He noted that this latest drawdown was comparable with the massive correction in 2024 after the February and March rally.

Darkfost concluded that whale activity still demonstrated confidence despite the recent highly volatile period characterized by heavy uncertainty.

What is Smart Money’s Stance on Bitcoin?

The fear and greed index climbed to 45 in the last 24 hours, indicating slight sentiment recovery.

However, it was still in fear territory, meaning the market was likely still focused on short term price movements.

Meanwhile, smart money, AKA whale activityregistered a massive spike between Wednesday and Friday saw a strong demand wave that contributed to Bitcoin’s bullish performance.

However, large holder netflows cooled down on Saturday, signaling that that it was a short term burst of whale activity.

This may explain the downside in the last 24 hours as some traders took profits. Bitcoin balance by time held coincided with the aforementioned Darkfost analysis.

IntoTheblock data revealed that HODLer holdings (1 year plus) hovered at 12.37 million BTC. This was the same level of holdings that they had at the start of April.

Cruiser balances dipped slightly from 6.23 million BTC to 6.2 million BTC. Trader balances were up from 1.27 million coins to 1.3 million coins.

This signaled that swing traders may have taken profits while short term traders anticipate more upside.

The fact that long term holders have maintained their balances in the last 2 weeks could also signifying growing confidence.

Especially after Bitcoin’s heavy discount since its January peak. This could indicate that long term HODLers do not expect Bitcoin price to fall much lower from its recent lows.

Meanwhile, Bitcoin dominance continued ticking up, indicating that it stands to benefit the most in liquidity inflows make a strong comeback in crypto.