Historical Data Hints at Upward Price Momentum

Bitcoin’s latest pullback has been met with a wave of accumulation from large holders, leading to speculation that the market may be setting up for another rally.

According to market intelligence platform Santiment, since August 13, wallets holding between 10 and 10,000 BTC have added more than 20,000 BTC, possibly indicating that deep-pocketed investors view current prices as a prime entry point.

Whales Seize Opportunity

Per the analytics platform, this buying spree happened as the price of Bitcoin retreated by about 6.22% from its August 14 peak above $124,000.

And the accumulation trend isn’t isolated either, with Santiment noting that the cohort responsible for hoovering up the 20,061 BTC has been steadily increasing its collective stash since March 22, acquiring 225,320 BTC in that time. Historically, sustained accumulation by this caliber of holders has often been followed by upward price movement.

Market watcher Axel Adler Jr.’s analysis also supports this bullish sentiment. On August 19, he highlighted a sharpening negative 30-day average exchange netflow, which dropped from -1.7K to -3.4K BTC per day. According to him, this acceleration of Bitcoin leaving exchanges shows that buying pressure is currently exceeding selling pressure.

“Such a shift in a falling market is a bullish divergence, where participants are using the drawdown to buy back coins,” Adler observed.

Price Action and Market Outlook

Looking at the market, BTC is currently trading near $114,971. The price marks a very slight 0.3% drop in the last 24 hours and a more noticeable 3.3% dip during the week. The asset has defended the $115,000 level after briefly touching $114,740, but remains 7.3% off its record high reached a few days ago. Over the past month, it has slipped 2.6%, though it still holds a 96% gain year-over-year.

The broader crypto market has also been softened up, with total capitalization shedding more than $100 billion following growing geopolitical uncertainty tied to an August 18 meeting between U.S. President Donald Trump and Ukrainian leader Volodymyr Zelenskyy. Despite the macro headwinds, the number one cryptocurrency’s dominance remains near 58%, highlighting its relative strength against altcoins.

Right now, traders are advised to closely watch whether whale accumulation and exchange outflows can counterbalance short-term holder capitulation. If the experts have it correctly, sustained buying by larger players and quick absorption of loss-selling could pave the way for another price boost up ahead.