Bitcoin Whale Accumulation Resumes as 26,430 BTC Flows In, Buying the Dip?

Key Insights:

• Whale inflows exceeded 26,430 BTC, signaling institutional accumulation as Bitcoin’s price experienced a sharp decline.
• Technical analysis suggests Bitcoin is in Wave 5, with a potential parabolic breakout if resistance is surpassed.
• Changpeng Zhao reaffirmed his Bitcoin forecast, predicting a 1,030% surge following recent price fluctuations and market fear.

Bitcoin experienced a sharp decline at the start of the week, falling from around $96,500 over the weekend to $94,000 on Monday. This drop came despite a recent multi-billion dollar purchase by a major investment firm.

The downward trend continued into Tuesday morning when Bitcoin’s price plummeted to just under $88,000 on Bitstamp, marking its lowest level since November 15. The asset struggled to reclaim the $88,000 mark after a brief rejection at $90,000.

During the latest trading session, Bitcoin stood at $88,594.89, reflecting a 0.54% decline in the past 24 hours and a 7.29% decrease over the past seven days.

Whale Accumulation Signals Bitcoin Institutional Interest

Amid the sustained decline in Bitcoin price, a chart illustrating accumulation addresses belonging to whales indicated buying activity. The alert used by CryptoQuant goes off when whales pump more than 20,000 BTC.

According to data, the latest inflow value for BTC/USD reached 26,430.311 BTC, which crossed the above threshold. These transactions, often linked to over-the-counter (OTC) deals or long-term custody moves, suggest institutional investors are acquiring Bitcoin.

Typically, large inflows by whales are signs of long term faith in holding Bitcoin, which helps to reduce Bitcoin’s circulating supply. In the past, whales tend to buy Bitcoin during corrections and consolidation, thus adding to the momentum of a potential bull run.

Furthermore, OTC transactions indicate institutional accumulation without immediately affecting spot market prices, a common trait preceding widespread market change.

Technical Analysis Highlights Key Price Levels

Meanwhile, an analysis by Gert van Lagen presented a Bitcoin weekly time frame chart incorporating Elliott Wave Theory, parabolic curve trends, and key support and resistance levels. The chart outlined a five-wave impulse sequence, identifying Bitcoin’s current position in Wave 5.

$BTC [1W] – Wave ii was sharp, so by the principle of alternation, wave iv is expected to be flat. It now qualifies as an expanded flat after dropping below $89k (A).

Price action is oscillating between the trendline formed by weekly closes (dashed) and weekly highs (solid). pic.twitter.com/1nscEzm7TD

— Gert van Lagen (@GertvanLagen) February 25, 2025

Wave 3 marked a market peak, followed by a corrective Wave 4 phase that formed a descending wedge. A strong base developed at the wedge’s bottom between late 2022 and early 2023, leading to a bullish breakout. Wave 5 indicates that Bitcoin may begin a powerful price advance.

When Base 4 experiences a breakout, it can drive a swift price increase that points towards reaching the macro peak. The validation of a parabolic breakout to the the analyst’s target of $290,000 or higher would require price to surpass its upper resistance trendline. The Sell Line aligns with previous Elliott Wave extensions, marking a potential long-term price target. Conversely, if Bitcoin fails to hold key support levels, the trendline formed by weekly closes and highs remains crucial for further price action.

The chart indicated that an extensive flat price correction took place after Bitcoin fell past the $89,000 mark. Current price movements show market consolidation, because values fluctuate within the boundaries defined by weekly close and high trendlines. According to the analyst, selling Bitcoin in May presents itself as a viable decision.

Changpeng Zhao’s Prediction and Market Reaction

Bitcoin price reached $85,985, during a decline that prompted Binance co-founder Changpeng Zhao to make an important prediction. X users recalled a 2020 prediction from Zhao, in which he projected Bitcoin’s rise to $101,000 before a potential correction to around $85,000. This forecast materialized, as Bitcoin’s decline to $85,000 triggered extreme fear in the Crypto Fear and Greed Index (FGI).

Zhao recently delivered a new optimistic assessment predicting that Bitcoin could rise by 1,030% to achieve a price value of $1,001,000. Bitcoin climb to over $1M per coin indicates a prolonged positive market situation.

While Bitcoin price dropped, Eric Trump chose to advise X users to make their investments when markets lose value, saying buy the dip in a post. Bitcoin’s value decreased below $90,000 when Trump made his declaration, in an economic environment affected by U.S. trade movements.

₿uy the dips!!!

— Eric Trump (@EricTrump) February 25, 2025

Trump’s comment received mixed reactions, with some users expressing concerns over economic conditions and tariffs. Several responses linked Bitcoin’s drop to trade tensions, highlighting financial struggles faced by some investors.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of monetary loss.