The Bitcoin (BTC) network has recently dropped below the yearly moving average, indicating ‘bear market’ levels, according to Glassnode. However, despite this price weakness, some whales have been accumulating BTC. This decrease in network adoption could potentially hinder any expected strong recovery in the short term. On-chain analyst JA Maartun noted that BTC network activity has slowed below the 365-day moving average, a sign of ‘bear market’ levels similar to those seen in 2022 and 2018. This slowdown in adoption has historically limited BTC’s upside potential in the near future.
Recent whale and miner movements have also reflected this weak sentiment, with whales offloading 30K BTC – nearly $2.5 billion worth at an average price of $82K per BTC. Miners have also sold off 15K BTC, contributing to downward pressure on BTC accumulation levels, which have reached their lowest point since February. Despite these bearish indicators, BTC has managed to stay above $80K for over a week, thanks in part to strong U.S. spot BTC ETFs and Michael Saylor’s substantial bids. Glassnode reported that some whales were already bidding at current levels, indicating a positive Accumulation Trend Score metric. This suggests that larger wallets are beginning to re-enter accumulation mode, with some players viewing the current prices as entry points rather than selling levels.
The Coinbase Premium Index, however, indicates that demand from U.S. retail investors is currently at neutral levels, with the potential to move in either direction. A sustained increase in the Coinbase Premium Index could signal heightened demand for a BTC recovery, while a decrease could lead to a drop in BTC prices. Overall, the market sentiment for BTC remains uncertain, with a mix of bullish accumulation signals from whales and potential retail investor demand fluctuations. It will be important to monitor these indicators closely to gauge the direction of BTC’s price movements in the near future.
