Big Whales And Sharks Rebuilding Positions, Time to Buy Bitcoin?

Bitcoin has been struggling near $82,000 after fresh daily decline of over 4%. While retail investors continue to panic amid recent market turbulence, big players are positioning themselves strategically, potentially signaling what’s next for crypto.

In fact, Santiment revealed that Bitcoin’s whale and shark wallets have undergone several pivotal shifts over the past six months which indicates a major influence over the market’s direction.

A Market Turning Point?

According to data compiled by the crypto analytic platform, wallets holding 10 or more BTC began accumulating heavily around October 12, coinciding with the start of Bitcoin’s latest bull rally. This trend continued until late December when activity paused during the holiday dip.

However, accumulation resumed strongly on January 12, about a week before Bitcoin reached an all-time high of $109,000 – suggesting these large holders anticipated the rally’s peak.

Notably, from mid-February, whales and sharks began to offload their holdings, a move that aligned closely with a broader market downturn, which caused Bitcoin’s price to decline as retail traders were initially encouraged by temporary bounces. But the latest data indicates a renewed accumulation phase.

Since March 3, these key players have collectively added approximately 4,846 BTC back into their wallets. This trend was observed even as retail sentiment remains highly bearish. However, the significant re-accumulation has yet to impact Bitcoin’s price visibly, but if history serves as a guide, such moves by whales and sharks often precede major market shifts.

If accumulation continues, Santiment stated that the second half of March could see a meaningful recovery, potentially reversing the recent “bloodbath” following Bitcoin’s all-time high seven weeks prior.

What’s Next For Bitcoin

QCP Capital noted that Bitcoin’s $80,000 level is holding as key support for now, but prices may struggle to move higher in the short term since the hype around the Strategic Bitcoin Reserve is already factored in. Traders expect real bullish momentum to return only later this year.

Until then, the world’s leading crypto is likely to move in sync with stock markets, especially as both face pressure from potential tariffs and upcoming US inflation data.

Meanwhile, analyst Kevin Svenson said that Bitcoin has re-entered a critical zone within its weekly parabolic trend. According to Svenson, Bitcoin is still holding above last week’s lows, and no new lower low has been formed yet – a crucial sign that the bullish structure remains intact, for now.

Nonetheless, he warns that this may be Bitcoin’s final opportunity to maintain an exponentially higher low and preserve the broader uptrend. A breakdown from here could jeopardize the parabolic momentum and potentially lead to deeper corrections if buyers fail to step in.

Trader CrypNuevo offered a clearer stance on the current Bitcoin market structure explaining that the ongoing price action – filling out last week’s long wick – could serve as a retest of the crucial 1-week 50 EMA, a historically reliable bull/bear market indicator now sitting around $77,000. He notes that while Bitcoin might hover around this level for weeks, a strong reaction from $77,000 will be key in determining the next move.

Until a confirmed support/resistance (S/R) flip, similar to the one in March 2022, occurs, the bull market structure remains valid. CrypNuevo also pointed out that Bitcoin dominance is climbing toward 63-64% as BTC/USD fills the wick, which explains the ongoing pain in altcoins. He noted potential liquidity targets around $80,000 and $82,000 but ultimately expects a fakeout to the upside followed by a capitulation dip to $77,000 – a level from which Bitcoin could bounce.