Bitcoin is exhibiting signs of recovery as its price rebounds following a brief correction last week. Currently, the cryptocurrency is trading at $109,693, marking a 0.4% increase in the last 24 hours. However, this price remains approximately 2% below its all-time high of over $111,000, which was reached last month. This persistent strength in Bitcoin's price performance is supported by significant on-chain indicators, particularly from major holders.
CryptoQuant contributor Crypto Dan has recently analyzed the current market dynamics and behaviors of Bitcoin whales. In his latest report, Dan noted that although Bitcoin is trading near record levels, there is little indication of the profit-taking behavior that is often seen at previous market peaks. He pointed out that whales are not engaging in large-scale sell-offs, suggesting that these investors anticipate a continuation of the rally.
Dan highlighted that these large holders are likely waiting for greater market enthusiasm and elevated valuations before initiating significant selling, a trend that is commonly observed in the final phases of a bull market. He stated, "Whales show no intention of taking profits at this price level and are likely to wait for higher prices, where significant market overheating and a bubble form, before making their moves."
Another CryptoQuant analyst, Darkfost, also noted a significant trend in the trading behavior of Binance whales. He pointed out that historical data indicates when Bitcoin approaches or exceeds its all-time high, there is usually a sharp increase in exchange inflows driven by whales looking to secure profits. This was evident in previous market cycles, where inflows reached as high as $5.3 billion in early 2024, and even more in earlier cycles.
Currently, however, inflows to Binance are around $3 billion and are continuing to decline, suggesting that whales are opting to hold onto their assets rather than sell. Darkfost remarked, "Today, inflows are just around $3 billion and are continuing to decline, suggesting that these whales prefer to keep holding." This deviation from historical trends indicates that whales are refraining from selling at present levels.
The reduced selling activity among large holders signifies an expectation of potentially higher prices in the future, as they position themselves for greater returns later in the market cycle. This restraint is considered an important indicator, particularly given the impact that whale movements can have on market liquidity and price fluctuations.
