Bitcoin News: Whales Aggressively Buy the Dip, Price Reclaims $70,000

Key Insights:

• Bitcoin news shows that BTC accumulation by whales accelerates at recently discounted levels.
• Bitcoin price regains bullish momentum and reclaims $70,000.
• Here’s how institutions are positioning themselves according to Bitwise CEO.

The wave of sell pressure observed last week has cooled, and some interesting Bitcoin news has popped up this week.  The developments could reveal the cryptocurrency’s next move.

This week off to some positive Bitcoin news, kicking off with whale activity consistent with accumulation. CryptoQuant data revealed a massive spike in inflows into accumulating addresses during recent lows.

Bitcoin news: Inflows into Accumulation Addresses | Source: CryptoQuant

The same indicator revealed a growing demand cluster as the Bitcoin price pushed lower. This highlights a shift from the bearish Bitcoin news that dominated the market over the last week or so toward rising bullish momentum.

The data revealed that accumulator addresses acquired more than 66,900 BTC on 6 February. This demand contributed to the aggressive bounce back in Bitcoin price observed during the same trading session.

In other words, whales and smart money have been accumulating Bitcoin while it was deeply oversold.

Bitcoin Price Jumps Back Above $70,000

Bitcoin news just kicked off the week on a bullish note after a heavily bearish performance last week. The demand resurgence highlighted by the accumulator addresses aided in the cryptocurrency’s recovery above $70,000.

Bitcoin price exchanged hands at $71,200 at press time after rallying by almost 3% in the last 24 hours. This recovery confirmed that the bears are taking a break after an aggressive performance last week.

Bitcoin Price Extends Recovery | Source: TradingView

The latest Bitcoin USD decline marked the most oversold crash that the cryptocurrency has experienced in more than 2 years. As a result, traders have been waiting for clear signs of recovery.

Interestingly, this demand resurgence from the whales occurred just after the Bitcoin Sharpe ratio retested a noteworthy demand zone. Bitcoin demand has historically made a comeback after the price dipped below zero.

Bitcoin Sharpe Ratio Signals Price May Be in Demand Zone | Source: CryptoQuant

While the Sharpe ratio may signal a demand resurgence, it is worth noting that it may still dip lower.  This also means BTC price may still extend its decline below the current levels if market conditions remain unfavorable.

Institutional Positioning May Offer Insights into Bitcoin’s Next Move

Although BTC price has achieved a slight recovery, its prospects of a deeper recovery may be heavily influenced by a multitude of factors. Among them are whether overall market sentiment will favor recovery and the level of demand it will generate in the coming days.

Bitwise CEO Hunter Horsley recently revealed that institutions might be taking advantage of the recently discounted prices. He noted that institutions see the recent crash as another chance to buy Bitcoin at prices they never imagined they could see again.

Institutions Buying the Dip | Source: X, Courtesy of Coin Bureau

The Bitwise CEO noted that his conversation with one of the top hedge fund managers revealed intent to buy. However, this does not necessarily shield Bitcoin from more downside.

Large order book data still demonstrated reluctance to dive back in among the whales. This is uncharacteristic of demand during optimistic periods. In other words, Bitcoin could still be at risk of further downside.

Investors and analysts are now on the lookout for signs that could point to the next market direction. Institutions concluded Friday with some accumulation in the Bitcoin ETF cohort.

Robust ETF inflows this week will determine the institutional investor mood. This could be a decent yardstick for determining whether liquidity is ready to flow back into the market.

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