Bitcoin Whales Accumulate 300% of Annual Supply as Price Hovers Near $85,314

Large investors, commonly referred to as "whales," are rapidly acquiring Bitcoin at unprecedented levels. Recent data indicates that these significant holders are purchasing approximately three times the daily amount of Bitcoin produced by miners. This aggressive buying spree is occurring as the cryptocurrency hovers around key price levels, suggesting a potential surge in Bitcoin's value.

According to Glassnode, investors with holdings ranging from 100 to 1,000 Bitcoins are actively accumulating the cryptocurrency. Currently, these large holders are acquiring over 300% of the annual supply emission of Bitcoin. This trend is significant as it reflects a strong confidence in the long-term value of Bitcoin among major investors.

Concurrently, major cryptocurrency exchanges are experiencing steady outflows of Bitcoin. This movement indicates that an increasing number of whales and large holders are transferring their assets to long-term storage solutions rather than keeping them on exchanges for trading purposes. Market observers interpret this exodus as a sign of growing confidence in Bitcoin's future value.

Most of these large investors have maintained their buying strategy even during price drops, viewing these downturns as opportunities to increase their positions rather than sell. Onchain analysts have noted that this behavior mirrors trends observed during Bitcoin’s 2020 bull cycle, where similar accumulation patterns preceded significant price increases.

Bitcoin is currently trading at approximately $85,314. Technical indicators suggest that the cryptocurrency is testing its 50-day and 200-day exponential moving averages as points of resistance. Analysts have previously identified these levels as approximately $85,500. If Bitcoin fails to breach these technical barriers, a pullback could occur, with the next important support level lying around $80,000 on the upper trendline of the current wedge formation.

Over the past week, Bitcoin's price has shown a narrow range between approximately $75,000 and $85,000. This period of low volatility, combined with substantial buying pressure, suggests that accumulation is occurring behind the scenes in anticipation of a significant price move.

The price of Bitcoin has recently entered a correction phase after nearly three months of reaching highs near $100,000 earlier in the year. The price has seen a drop of nearly 30% since then. According to analysts, this drop aligns with the typical trend observed in previous bull markets, where a decrease of 25-35% midway through the cycle is often followed by a resumption of the upward price trend.