Bitcoin Whale Accumulation Signals Possible Trend Reversal

Over the weekend, the price of Bitcoin (BTC) experienced a notable drop, dipping below its ascending channel pattern and reaching a low of $81,222 on March 31. This decline suggests that Bitcoin could be on track to record its worst quarterly performance since 2018. However, a group of major investors, known as "whales," is showing patterns reminiscent of those seen during the bullish activity of 2020.

Bitcoin 1-day chart. Source: TradingView

Onchain analyst Mignolet recently shared insights indicating that whale addresses holding between 1,000 to 10,000 BTC exhibit a strong correlation with Bitcoin's price movements. These whale entities appear to continue their accumulation efforts, showing a remarkable resilience to fluctuations in the market. Their behavior mirrors that seen during the bull run of 2020.

Bitcoin whale accumulation analysis. Source: CryptoQuant

This emerging pattern has manifested three times during the current market bull run, particularly characterized by rapid accumulation by Bitcoin whales even when retail investors expressed skepticism over a positive market trend. Each occurrence of this behavior has taken place during periods of prevailing bearish sentiment, suggesting that these whales might be strategically positioning themselves ahead of potential recoveries.

Even with the recent decline in BTC's price, Mignolet noted, "There are no signs yet that the market-leading whales are exiting." As illustrated in the accompanying chart, a specific accumulation pattern (referred to as "Pattern No. 3") has shown similar accumulation rates, despite Bitcoin's price remaining relatively stable.

Related: Bitcoin trader issues 'overbought' warning as BTC price eyes $84K

The Path to $84,000 and the CME Gap Impact

As the New York trading session commenced on March 31, Bitcoin made efforts to recover by closing the gap in its CME futures. This CME gap represents the difference between the closing price of BTC futures on Friday and the opening price on Sunday evening.

Bitcoin CME gap analysis. Source: TradingView

Starting the week on a positive note, Bitcoin's price could face several significant economic events in the U.S. that may influence market dynamics:

• April 1, JOLTS Job Openings: This indicator reflects demand in the labor market; a decline could suggest economic weakness.

• April 2, US tariff rollout: This event, dubbed "Liberation Day," involves the implementation of hefty tariffs affecting up to 25 countries, potentially influencing market conditions.

• April 4, releases including Non-farm payrolls (NFP), the unemployment rate, and a speech from Federal Reserve Chair Jerome Powell.

Bitcoin 4-hour chart. Source: TradingView

Currently, Bitcoin's immediate target is to reclaim the $84,000 level and solidify it as support, which could lead to a bullish momentum. Achieving and maintaining this level would help push BTC prices above the 50-day exponential moving average, potentially spurring a short-term rally to the supply zone that lies between $86,700 and $88,700.

Conversely, if Bitcoin remains under the $84,000 mark for an extended period, this could enhance the level's resistance properties, risking further declines towards liquidity areas between $78,200 and $76,560.

Related: Bitcoin's 'digital gold' claim challenged as traders move into bonds and gold hits new highs

It is essential to note that this article does not constitute investment advice or recommendations. Each investment and trading decision involves associated risks, and readers are encouraged to conduct thorough research before making any financial commitments.

Bitcoin, whales, accumulation