Bitcoin Whales Accumulate 22K BTC as Price Drops to $34K, But Will It Hold As Local Bottom?

Bitcoin [BTC] whale wallets saw a spike in accumulation inflow of over 22K BTC during the dip on the 28th of January.

Bitcoin [BTC] whale wallets saw a spike in accumulation inflow. What does it mean for BTC price?

Bitcoin [BTC] whales were spotted accumulating BTC in their wallets. Notably, such spikes were observed during local bottoms.

Does that mean BTC price marked $97K as the bottom for a springboard to higher levels?

Well, the FOMC forward guidance and key U.S. inflation data (due Friday) could decide the asset’s next move into February.

Bitcoin whales sell-off

However, many whales with over 1K BTC have been cashing out since mid-December.

Glassnode data showed these whale entities had dropped 4% from 1,724 to 1,655, highlighting increased sell-offs in the past week.

A continued drop in the metric could be a warning sign for a potential local or cycle top, as observed in the 2020-2021 cycle.

AMBCrypto also checked the network growth for more insights. Since December, the average active addresses have dropped from nearly 1.1 million to 957K.

However, the metric seemed to have bottomed out at the 950K. A renewed surge could signal increased market interest for BTC, which could propel the king coin price to new highs.

But demand was almost flat at the time of writing. According to the Coinbase Premium Index (CPI), an indicator that tracks U.S. investors’ appetite for the world’s largest cryptocurrency, remained muted in January.

Historically, BTC has spearheaded a sustainable uptrend whenever the CPI was positive (green) for an extended period.

At press time, the largest digital asset was sandwiched between the $100K-$105K price range, ahead of key U.S. inflation data.