Bitcoin’s bullish momentum may be gearing up for another surge as on-chain data signals a decline in whale inflows to exchanges. According to CryptoQuant, the 30-day simple moving average of the Whale Exchange Ratio—measuring the size of the top 10 exchange inflows relative to all inflows—has moderated after a robust upward trend since late 2024.
Whale Activity Signals Market Shift
Bitcoin (BTC) typically reaches its cycle peak when whale inflows decline from local highs. On February 12, the Whale Exchange Ratio stood at 0.46, nearing multi-year highs but showing signs of stabilization. This comes after a rise from December’s low of 0.36 when BTC was trading near its all-time high.
While whale transactions have increased since December, the pace is slowing, suggesting a potential shift toward bullish momentum. Historical data indicates that a drop in whale deposits on spot exchanges often precedes a Bitcoin rally, reinforcing optimism among investors.
Bitcoin’s Key Support at $90,000
An emerging factor in BTC’s price stability is the role of newer whales. Large-volume investors holding BTC for up to six months have an aggregate cost basis just under $90,000. This level has served as a critical support zone for over three months, making it a focal point for traders.
Should Bitcoin maintain this support, analysts believe it could set the stage for the next major price surge, further fueled by diminishing whale exchange deposits.
Miners Return to Accumulation
Adding to the bullish sentiment, Bitcoin miners have resumed accumulation after nearly six months of continuous outflows. Historically, miner accumulation aligns with market bottoms and precedes price uptrends.
This shift follows a recent miner “capitulation” phase, a trend that often signals local market bottoms. Additionally, while miner outflows were a significant factor in Bitcoin’s price movements in the past, their impact has since been overshadowed by institutional flows, particularly those from U.S. spot Bitcoin ETFs.
Also Read: Raoul Pal Predicts Dogecoin Will Surpass Bitcoin as the Leading Cryptocurrency
With whale inflows plateauing and miners accumulating, Bitcoin’s next leg up appears to be forming. If historical trends hold, BTC could be on the brink of another bullish breakout.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
