Bitcoin’s Bottom Behind Us? Whale Movements Signal Fragile Market Recovery

Massive whale transactions ripple through Bitcoin markets as institutional players test the waters.

Tracking the Titans

Whale wallets moving thousands of BTC spark both optimism and caution among analysts. These aren't retail investors dipping toes—these are institutional sharks circling what they hope is the market bottom.

Recovery or Mirage?

Price action shows tentative gains, but veteran traders remember how quickly whale selling can tank fragile rallies. The 'smart money' appears to be accumulating, though whether they're building positions or preparing to dump remains the billion-dollar question.

Market psychology shifts from panic to cautious optimism as trading volumes suggest genuine buyer interest rather than just short covering. Still, one analyst noted 'whales feed on retail optimism like Wall Street bankers at a taxpayer-funded buffet.'

The delicate dance continues—whales accumulating, retail watching, and everyone wondering if this recovery has real teeth or just temporary dentures.

Bitcoin MVRV Ratios Signal Traders Still Deep in Losses

The short and long-term MVRV ratios in Bitcoin remain negative, and this means that most traders are in the red.

In the situation where the MVRV goes negative, it means there’s no need to sell, and this can sustain a small short-term bounce. However, the bigger picture isn’t pretty.

The number of bitcoin addresses created has reduced from 3.37 million in mid-December 2023 to 2.21 million at present. The number of active addresses has also reduced, from 963,900 to 729,200.

The reason could be less use of Bitcoin, and this, according to analysts, is unhealthy when the markets are struggling to instill confidence.

Whale Wallet Activity Signals Ongoing Weakness

The largest warning sign comes from wallet activity. The Holders with 10-10,000 BTC, who are normally associated with funds, trading companies, and long-term whales, are still reducing their aggregate supply.

These wallets heavily accumulated from early September to early October, contributing to the Bitcoin peak on the 6th of October. The figures in their wallets flatlined on the 8th and have fallen for the past six weeks.

On the other hand, smaller traders with below 0.1 BTC are aggressively buying the dips. Such a scenario hardly ever forms the bottom. Large investors have always led the major bulls since 2020, and hence, their absence still keeps the rally in a fragile position.