Whales pull 20K BTC off exchanges: What it means for Bitcoin’s rebound

Key Takeaways

Bitcoin’s seller wave dried up as Spent Volume hit 529K BTC, while whales accumulated, Exchange Whale Ratio fell, and Netflow turned negative at -$128 million. Can $112K hold if sellers reappear?

After hitting a local low of $111k, Bitcoin [BTC] bounced back to $117,421 before retracing to a low of $115,411. 

As of press time, Bitcoin traded at $115,601, up 2.45% in 24 hours — a sign of building upward pressure.

But what was behind this price recovery?

Bitcoin’s wave of sellers dries up

According to CryptoQuant analyst Axel Adler, Bitcoin’s Spent Volume (SMA-7d) dropped sharply, with the weekly average sliding to 529K BTC per day.

Source: CryptoQuant

Such a massive decline signaled that the primary wave of sellers at current price levels has dried up, with sellers taking a step back in the market.

This is primarily due to reduced incentives to sell following Bitcoin’s recent dismal performance. 

In fact, Realized Profit fell across cohorts. Long-term holders booked only 7.2K BTC in profit, while short-term holders realized just 1.8K BTC, despite the bounce.

Source: Checkonchain

Whales pull coins off exchanges

With Bitcoin swinging, whales have repositioned themselves with less exchange activity. 

Source: CryptoQuant

CryptoQuant data showed the Exchange Whale Ratio fell to a 12-day low of 0.43. When this metric drops, it suggests that fewer whales are sending their BTC to exchanges compared to overall flows. 

Typically, such a decline reflects substantial accumulation, with whales sending their BTC to private wallets rather than preparing to sell. This sentiment is especially prevalent among Bitcoin’s Megawhales. 

Source: Checkonchain

According to Checkonchain, MegaWhales and Exchanges (>10K BTC) posted a balance change of -20.36K BTC, showing withdrawals outweighed deposits. Large holders were accumulating, not selling.

Historically, reduced selling activity from large holders while they accumulate has preceded higher upward pressure on price, often a prelude to higher prices. 

Can easing pressure boost BTC?

According to AMBCrypto’s analysis, Bitcoin recently rebounded as selling pressure declined while whale accumulation remained constant. 

As a result, King Crypto’s Netflow turned negative, reaching a low of -$128 million, a clear sign of aggressive accumulation. 

Source: CoinGlass

Having said that, if whales continue to absorb supply, Bitcoin could reclaim $117K and test $119,600.

However, if sellers return, BTC risks retesting the $112K support zone.