Bitcoin: Analyzing Whale Accumulation and Future Price Movements

Bitcoin (BTC) recently experienced a notable decline, dipping below its ascending channel pattern into the $81,222 range by March 31. This slump marks the cryptocurrency’s anticipated worst quarterly return since 2018. However, recent behaviors from a significant group of whale entities indicate a potential bullish signal akin to what was observed during the 2020 bull run.

According to on-chain analyst Mignolet, “market-leading” whale addresses—those holding anywhere from 1,000 to 10,000 BTC—have demonstrated a strong correlation with Bitcoin’s price movements. These entities tend to remain resilient against market fluctuations, exhibiting a behavior of accumulation reminiscent of the patterns seen during the last bull cycle.

Despite the current bearish sentiment prevailing among retail investors, whale accumulation has occurred in distinct phases, often leading up to significant price increases. Mignolet pointed out that there are still no indicators suggesting that major whales are exiting their positions.

“There are no signs yet that the market-leading whales are exiting.”

This observation resonates with historical patterns where periods of accumulation coincided with sideways price movements prior to upward trends.

Can Bitcoin Reach $84,000 Following the CME Gap?

As trading commenced on March 31, BTC made moves to close the CME futures gap that evolved over the weekend—showcasing the difference between Friday’s closing price and Sunday evening’s opening price.

As BTC began the week on a positive note, various U.S. economic indicators may influence its trajectory:

• April 1, JOLTS Job Openings report may indicate labor market strength or weakness.

• April 2, the rollout of U.S. tariffs on several countries could impact market conditions.

• April 4 will see the release of Non-farm payrolls, unemployment rates, and remarks from Federal Reserve Chair Jerome Powell.

The immediate focus for BTC is to convert the $84,000 level into a supportive foundation for further bullish activity. If this threshold can be reclaimed, we could potentially see Bitcoin rally past the 50-day exponential moving average, possibly surging towards a target zone between $86,700 and $88,700.

Conversely, sustained trading below $84,000 could solidify its resistance, driving BTC into lower liquidity areas between $78,200 and $76,560.

This article does not provide investment advice or recommendations. All investments and trading activities involve risks, and readers should perform their own due diligence before making any financial decisions.