Bitcoin Whales Hoard Millions as Panic Selling Sweeps Retail Traders

 

Bitcoin Shakeout Masks Quiet Accumulation by Whales, Analysts Say

As cryptocurrency forums and social media feeds fill with panic over Bitcoin’s recent decline, some market analysts are arguing that fear alone does not explain the digital asset’s dramatic price movements. Instead, they suggest a quieter, more deliberate trend is unfolding beneath the surface – a period of strategic accumulation by institutional and high-net-worth holders.

Over the past week, Bitcoin has tumbled from $126,000 to near $105,000, prompting headlines to proclaim a renewed bear market. Yet according to blockchain data specialists, the selling pressure has coincided with increasing deposits into large wallets – a pattern that may signal the early stages of the next upward cycle rather than a capitulation-driven collapse.

The Quiet Accumulation Phase

Market strategist Shanaka Anslem Perera, who has been analyzing on-chain Bitcoin metrics for several years, points to the activity of wallets holding between 1,000 and 10,000 BTC. He notes these “whale” addresses have steadily increased their balances over the course of October, even as retail sentiment soured.

“This looks remarkably similar to 2020,” Perera said. “Back then, Bitcoin lingered near $12,000 before launching a six-month rally that produced gains of roughly 170%. The pattern of accumulation while fear dominates headlines is unmistakable.”

The phenomenon underscores a recurring theme in cryptocurrency markets: while retail traders may panic and sell during downturns, institutional and long-term investors often see such periods as buying opportunities. Perera refers to this as the “phase of quiet conviction,” when smart money quietly enters the market without drawing attention.

Data from Glassnode, a leading blockchain analytics provider, confirms steady inflows into large addresses despite the 15% price drop. Perera believes that the market is currently operating within a “pain zone,” as measured by Bitcoin’s MVRV Z-Score, which compares current prices to historical fair value. At a level of approximately 2.15, the metric signals a price range where historical bottoms often occur, suggesting that Bitcoin may be nearing a turning point.

Parallels to Previous Market Lows

Analysts draw striking parallels between the current setup and prior cycle lows. In 2018, when Bitcoin bottomed near $3,000, despair and exhaustion were pervasive, yet the stage was set for a rapid rebound. Similarly, the 2020 pre-halving lull saw accumulation intensify as public sentiment remained overwhelmingly negative, leading into one of the cryptocurrency’s most explosive rallies.

“Every major bottom is defined by exhaustion,” Perera explained. “It’s a point where weak hands sell, headlines scream ‘collapse,’ and savvy investors quietly accumulate. Those who can recognize it are often the ones who profit the most in the subsequent leg higher.”

He also notes that macroeconomic conditions may accelerate the rebound. The ongoing U.S. government shutdown could replicate dynamics that have previously triggered market recoveries, creating favorable conditions for capital inflows into Bitcoin. “Capitulation isn’t the end – it’s the ignition point,” Perera said.

Technical Levels and Institutional Influence

Technical analysts are closely monitoring the $106,000–$107,000 support range as a critical line in the sand. Axel Adler, a veteran trader and crypto strategist, considers this level the strongest support zone for the current cycle, while Matt Mena of 21Shares projects that a sustained hold above it could pave the way for a climb toward $150,000 by the end of the year.

Institutional participation adds an additional layer of support. With ETF-driven inflows now exceeding Bitcoin’s new issuance, Perera notes that the market structure is “tighter than any prior cycle,” limiting available supply and intensifying upward potential once accumulation concludes.

JPMorgan analysts have also suggested that Bitcoin’s fair value hovers near $165,000, reinforcing the idea that current prices may offer a long-term buying opportunity. Perera’s projections align with this view, suggesting that Bitcoin could reach new highs if the accumulation phase continues and market confidence returns.

The Calm Before the Next Rally

“From a historical perspective, bottoms always look obvious in hindsight,” Perera reflected. “The same elements repeat themselves: panic dominates social feeds, negative headlines abound, and whales quietly accumulate. That exhaustion is what historically signals the end of selling pressure and the start of a new upward cycle.”

This cycle appears no different. Even as Bitcoin hovers just above $100,000, large wallets are quietly stocking up, setting the stage for what could be a significant breakout. Analysts caution, however, that short-term volatility remains high, and the market could experience additional pullbacks before a sustained rally occurs.

For traders, understanding the difference between panic and accumulation is crucial. Retail participants often react emotionally to market dips, while institutional players operate based on strategic models and long-term risk assessments. Recognizing this distinction may help investors position themselves advantageously as the market moves into its next phase.

What Investors Should Watch

Key indicators to monitor include MVRV Z-Score levels, inflows to large wallets, and ETF-driven institutional demand. Observers should also track macroeconomic triggers, such as fiscal developments and monetary policy shifts, which historically have coincided with Bitcoin rebounds.

If Bitcoin maintains its position above the $100,000–$107,000 range, analysts anticipate renewed momentum in the weeks ahead. A successful hold at these levels could prompt the previously sidelined liquidity to enter the market, potentially propelling Bitcoin toward six-figure gains once more.

Perera emphasizes that the defining emotion of this phase is not fear but exhaustion – a subtle signal that market psychology is shifting, and that smart money is accumulating in anticipation of the next leg up.

“Smart money isn’t waiting for confidence to return,” Perera concluded. “It’s already buying. The question now is whether retail investors recognize the opportunity before the market moves higher.”

With Bitcoin and other major cryptocurrencies entering a potential accumulation zone, traders and analysts alike are preparing for what could be one of the most decisive phases of the current market cycle. If historical patterns hold true, the current dip may prove to be the final shakeout before a broader, sustained rally unfolds.

Source

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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