CryptoQuant Indexes 6 Straight Days of Bitcoin Whale Accumulation from Custody Wallets

CryptoQuant highlights six consecutive days of sustained Bitcoin accumulation by whale addresses, especially custody wallets.

This bullish accumulation trend comes amid the ongoing market uncertainty that has seen Bitcoin constantly battling the $60K region. Notably, over the past three weeks, Bitcoin has oscillated between a high of $61,331 and a low of $52,546 as the bears and bulls battle for dominance.

Bitcoin Whale Accumulation Spikes

Interestingly, during this period of uncertainty, more convicted whale players have continued to accumulate more tokens. According to a recent disclosure from CryptoQuant chief Ki Young Ju, a CryptoQuant alert bot has sent out six accumulation alerts pertaining to whale addresses over the past six days.

Whales are accumulating #Bitcoin.

Six days of accumulation alerts in a row. Primarily from custody wallet inflows.

Nothing has changed for Bitcoin; we’re in the middle of the bull cycle. pic.twitter.com/DE0A1Khhus

— Ki Young Ju (@ki_young_ju) September 18, 2024

He further confirmed that most of the addresses involved in this buying spree are custody wallets. The CryptoQuant CEO asserted that the Bitcoin bullish sentiment has not particularly changed, given the current accumulation trend. He stressed that the market is still within a bull phase despite the ongoing consolidation.

Notably, on-chain data corroborates the disclosure from Ki Young Ju. Data shows that the Bitcoin Permanent Holder Demand has spiked rapidly over the past week, with multiple alerts of accumulation triggered by this metric within this period. This trend represents the largest historical cluster recorded in the market.

Interestingly, the Permanent Holder Demand shows a surge in addresses accumulating Bitcoin amid the sustained rally from January of this year to March, reaching a high of 56.5K. However, as Bitcoin collapsed from the all-time high above $73K in mid-March, this figure continued to drop.

As of May 6, there were only 970 accumulating addresses. Nonetheless, a recovery emerged as market sentiments improved despite the turbulence. The surge has only picked up in recent times amid bullish Bitcoin price predictions, reaching a high of 28.57K addresses today.

Bitcoin Needs to Breach $61K

The spike in whale accumulation is typically a precursor of a price rally, as historical data confirms. This has triggered Ki Young Ju’s sentiments that the market is still in a bull phase. With Bitcoin now trading for $59,523, its Relative Strength Index (RSI) holds steady at 52, suggesting potential for further upside momentum. 

At the current position, Bitcoin’s immediate resistance stands at the $61K region. A confident break above this level could allow the bulls push toward the next resistance at $66,498. However, on the downside, BTC needs to hold above $58,037 to hedge against any further drops during a market correction.